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Ministry Forms Taskforce to Tackle Microfinance Sector Challenges

March 16, 2024
Microfinance Sector Challenges
Photo: Khabarhub

The Ministry of Finance has formed a seven-member task force to address challenges within the microfinance sector. Finance Minister Barshaman Pun announced the formation, appointing a committee chaired by a deputy governor of the Nepal Rastra Bank.

The committee includes key stakeholders such as an executive director from the central bank and representatives from the Ministry of Finance. Additionally, members of the Microfinance Victims Struggle Committee have been appointed.

Dr. Ram Prasad Ghimire, the Revenue Secretary, disclosed that the Rastra Bank will select the taskforce coordinator from among its two deputy governors. The task force has been given 60 days to deliver a report identifying sector challenges.

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The Ministry of Finance intends to consider policy and legal reforms based on the task force’s findings to regulate and improve microfinance institutions.

In a related development, an agreement was reached between the government and protesting microfinance victims. Point 5 of the agreement involves the establishment of a task force to identify sector issues and propose solutions, leading to the cessation of protest activities.

The Microfinance Victims Struggle Committee highlights difficulties faced by borrowers in loan repayment due to adverse circumstances like earthquakes, blockades, and the COVID-19 pandemic. They allege violations of regulatory procedures by microfinance institutions during loan processes, emphasizing the need for resolution.

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