Microfinance registration refers to the formal process of establishing and legally recognizing a microfinance institution (MFI). Microfinance institutions provide financial services, such as small loans, savings accounts, insurance, and other basic financial services, to individuals or small businesses that lack access to traditional banking services. The registration process ensures that the MFI operates within the legal and regulatory framework of the country, ensuring transparency, accountability, and protection for clients.
Important Points For Micro Finance Registration:
1. Type of Entity:
MFIs can be registered as different types of entities, including Section 8 Companies (not-for-profit), Non-Banking Financial Companies (NBFC-MFIs), Trusts, and Societies.
2. Registration with RBI:
NBFC-MFIs must obtain a Certificate of Registration from the Reserve Bank of India (RBI). Submit the application for registration to the RBI along with the required documents and fees.
3. Incorporation:
If choosing to register as an NBFC-MFI, the entity must be incorporated as a company under the Companies Act, 2013. For Section 8 Companies, Trusts, or Societies, follow the respective incorporation processes under the Companies Act, Trusts Act, or Societies Registration Act.
4. Directors and Management:
Ensure the directors and management team meet the ‘fit and proper’ criteria set by the RBI. Provide details of the board of directors and key management personnel.
Fields of Expertise
MICRO FINANCE
Microfinance registration refers to the formal process of establishing and legally recognizing a microfinance institution (MFI). Microfinance institutions provide financial services, such as small loans, savings accounts, insurance, and other basic financial services, to individuals or small businesses that lack access to traditional banking services. The registration process ensures that the MFI operates within the legal and regulatory framework of the country, ensuring transparency, accountability, and protection for clients.
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Child Custody
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Need For Micro Finance Companies
Microfinance companies play a crucial role in promoting financial inclusion by providing financial services to underserved and low-income individuals who typically lack access to traditional banking. Numerous organizations, including banks, exist in India that provide loans to support enterprises. What makes microfinance companies necessary, then? It is necessary because it accomplishes the following goals:
It provides financial assistance to enterprises that cannot place collateral.
Microfinance companies provide financial services to individuals and small businesses that are excluded from the traditional banking system.
It provides startups with much-needed support.
Microfinance solutions enable consumers to obtain loans when they most need it and increase credit availability. Banks rarely give customers small loans; MFIs that offer microloans fill this gap. By raising the amount of funds accessible to the poor, it enables capital growth.
It formalizes the process of lending and hence brings about discipline in borrowing by low-income groups. This prevents over-borrowing and reduces complications arising out of high future debts.
A microfinance company registration can happen in the following two ways
Formation of Microfinance Companies
The Reserve Bank of India ideally only permits Non-Banking Finance Companies (NBFCs) to do financial activity. Nonetheless, the RBI grants specific businesses exemptions to carry out financial operations up to a predetermined threshold.
Non-Banking Finance Companies (NBFC) duly registered with RBI
Non-Banking Finance Companies (NBFCs) are financial institutions that offer various banking services but do not have a banking license. They are regulated by the Reserve Bank of India (RBI) under the RBI Act of 1934.
Section 8 companies (companies formed under Section 8 of the Companies Act 2013)
Section 8 companies are entities formed under Section 8 of the Companies Act, 2013, in India. These companies are primarily established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or any other useful objective
Microfinance Company Registration as an NBFC
Given the differences in the two models for forming a microfinance company, the registration process also varies considerably. The following are the steps involved in the registration of a microfinance company through an NBFC:
List Of All Members
Rules And Regulations Of The Society
Pan Card
A Covering Letter
Proof of Address
Identity Proof Of Members
Memorandum Of Association
Self Declaration
Photographs
Advantages
Financial Inclusion:
Provides low-income individuals and underserved communities access to financial services that traditional banks often overlook.
Risk Management:
Helps households and small businesses manage unexpected expenses through savings, credit, and insurance services.
Poverty Alleviation:
Empowers individuals to improve their living standards, generate income, and start or expand small businesses.
Local Economic Development:
Encourages job creation, entrepreneurship, and sustainable economic growth in local communities.
Women Empowerment:
Enhances women's economic participation and promotes gender equality by focusing on women, who are often marginalized by traditional financial institutions.
Disadvantages
High Interest Rates:
Microfinance Institutions (MFIs) often charge higher interest rates than traditional banks, leading to potential debt for borrowers due to the higher costs associated with small loans.
Restricted Financial Services:
MFIs typically offer basic services such as credit and savings, but may lack more advanced options like investment opportunities or insurance, limiting financial choices for consumers.
Credit Risk:
Lending to low-income individuals without traditional collateral increases the risk for MFIs if borrowers default on their loans.
Over-Indebtedness:
Borrowers who take out multiple loans from different sources risk falling into a cycle of debt if they cannot generate sufficient income to repay their debts.
Ethical Concerns:
Issues regarding client treatment, transparency in loan terms, and ensuring that microfinance practices genuinely benefit the communities served are critical to address.
Micro Finance Company Registration Process
Step 1 - Documentation
An application in the required format must be submitted to the RBI along with the following set of documents in order to be granted a license. The application may be rejected in its whole if any of these documents are not submitted at the time of submission. It is advised that all necessary paperwork be organized before starting the application procedure in order to prevent such a scenario.
Step 2 - Incorporate your company
A MFI-NBFC may choose to incorporate as a Private Limited Company or as a Public Company. Hence, the first step in establishing MFI-NBFC is for your firm to be incorporated as a Public or Private Limited Company, depending on what best meets its requirements. Here at Setindiabiz, we offer our comprehensive and affordably priced packages for the incorporation of both private and public limited companies. You can visit our official website on company registration in India to learn more and to make use of our services.
Step 3 - Insure Minimum Capital
An MFI-NBFC cannot file an application for RBI approval unless it have sufficient capital. The applicant company must have a minimum capital of Rs. 5 crores before it seeks for the required license from the RBI, since this is the stipulated capital limit, also known as the net owned funds for the same. Keep in mind that this sum is Rs. 2 crores for India's northeastern states.
Step 4 - Deposit Capital
Following the arrangement of the required capital of Rs. 5 crores, the funds must be put as a fixed deposit into an FD account formed in the NBFC's name at any scheduled commercial bank. The banker also has to get a No Lien Certificate.
Step 5 - Apply for RBI license digitally
The required application for an RBI license can be found on the RBI's official website. The application needs to be downloaded and manually completed. Once completed, the application must be uploaded by attaching a scanned copy of it and the necessary document scanned copies. Once an application is successfully submitted, a reference number is generated.
Step 6 - Submit the application to the RBI regional office
A copy of the application, the application reference number, and copies of the necessary documents must be sent to the RBI Regional Office after the application has been electronically submitted. After reviewing the application and successfully verifying its contents, the relevant authorities forward it to the RBI Central Office.
Step 7 - Issuance of RBI license
The RBI grants a license to the applicant company within a few days of the application being submitted. The NBFC can start functioning as a microfinance firm without any difficulties or roadblocks after obtaining the license.
Civil Unions
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Civil Unions
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Business Law
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Property Crime
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Property Crime
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AMFI has increased the ARN registration and renewal fees by 100% effective October 1, 2024. With this, the new ARN registration and renewal fee for individual distributors have been increased to Rs.3000 and Rs.1500 excluding GST, respectively. Such a fee was Rs.1500 (new registration) and Rs.750 (renewal). Similarly, AMFI has doubled EUIN registration and renewal fees to Rs.1500 and Rs.750, respectively. AMFI has increased registration and renewal fees by 100% for all categories of distributors be it individual, sole proprietary, LLP, HUF or private limited. In April 2021, AMFI had reduced the registration and renewal rates by 50% during the covid times. The current fee structure is in the line with pre-covid times, said AMFI. In a circular, AMFI said, “The matter was reviewed by the AMFI Board at the Board Meeting held on Sept. 06, 2024 while discussing AMFI's Financials & Income & Expenditure and considering that the things are absolutely normal now and the economy in general and MF industry in particular has progressed immensely since the time the covid pandemic receded, the Board felt that it would be in order and justified to restore/ revert to the original / pre-Covid fee structure.” Let us look at the table to know more: MFD category Registration Fees (in Rs.) Renewal Fees (in Rs.) Banks 4,00,000 2,00,000 Regional rural banks & Development credit banks 1,00,000 50,000 Non banking financial Company 1,00,000 50,000 Public Ltd. Co. 4,00,000 2,00,000 Pvt. Ltd. Co. 40,000 20,000 One Person Company 40,000 20,000 LLP 40,000 20,000 Partnership Firm 20,000 10,000 Urban Co-Op. banks, societies, trusts, HUFs 20,000 10,000 Post Office 15,000 7,500 Micro Finance Institution 15,000 7,500 Proprietorship firm 3000 1,500 Individuals 3000 1,500 Employees of MFDs (EUIN holders) 1500 750 * Plus GST @18%
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Powerd By SAG INFOTECH Notifications can be turned of anytime from browser settings A company is referred to as a Section 8 Company when registered as a Non-Profit Organization (NPO) i.e. when it has the motive of promoting arts, commerce, education, charity, protection of the environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives. The income of NPO can not be used for paying out dividends to the company’s members and has to be for the promotion of charitable objectives. Such companies obtain an incorporation certificate from the central government and are liable to adhere to the rules specified by the government. Fill Form for MCA/ROC V3 Software
According to the rules, failure to comply with the responsibilities stated by the Central Government may lead to the company’s winding up on the government’s orders. Besides, strict legal action will be taken against all the members of the company if the objectives laid down by the company prove to be bogus. Read Also:Download Trial & Start ROC/MCA Return Filing by Gen CompLaw Software Its manner of carrying out the operation is similar to any other limited company and even the rights & duties of a limited company and NPO are alike. However, the titles of “Section 8” and “Limited” can not be interchanged. An individual or an association of individuals are eligible to be registered as a Section 8 Company if it holds the below-mentioned intentions or objectives. The objectives have to be confirmed to the satisfaction of the Central Government. Companies Act, 2013 deals with the procedure of Incorporation of a Section 8 Company and as per this section, an application in Form No. INC.12 has to be submitted along with the below-mentioned documents to the Registrar of Companies. Form no. INC – 13 – Company’s Draft Memorandum of Association (MOA) and Articles of Association (AOA) in Form No. INC – 13 (as specified in Act) along with the affixation of subscribers’ photographs. Form no. INC-14 – A Declaration is to be affixed in Form no. INC-14 that the draft MOA & AOA are compliant with the provisions & norms of Section 8 and the requirements as per Section 8 have been duly taken care of. Note: The declaration has to be made on stamp paper & should be notarized by an Advocate, a Company Secretary, a Chartered Accountant or a Cost Accountant, practising the profession. Form no. INC-15 – A declaration in Form No. INC-15 on stamp paper & notarized by each member of the company who is applying. Form no. INC-9 – Form no. INC-9 form first directors as well as each subscriber, on the relevant State’s stamp paper and appropriately notarized. An estimation of the company’s future annual income and expenditure for the next three years, mentioning the sources of the income and the purpose of the expenditure. Companies (Incorporation) Sixth Amendment Rules, 2019 dated 7th June 2019 to ease the Incorporation process has knocked off the need for filing Form no. INC 12, which was initially needed. This amendment has made the Process of Incorporation of Section 8 Companies as easy & simple as that of other companies. Section 8 Companies can be incorporated by reserving names in part A of Spice+ followed by part B of the Spice+ form or by directly filing Spice+. License No. shall be given to the section 8 company during the incorporation. Stakeholders having License Numbers already before the filing of the SPICe form may file the form at their ease. However, one thing should be noted form processing takes time to let the workflow changes be effective. Companies Act 2013: Section 149(1) of the Companies Act 2013 – prescribed a minimum of 3 & 2 directors for public limited & private limited companies respectively and a maximum of 15 directors. But there is no minimum or maximum prescription for Section 8 Company. The second proviso to section 149(1) – prescribes a woman director in a specified class of companies. Section 149(3) of the Companies Act 2013 – prescribes resident directors in every company. Section 165 of the Companies Act, 2013 – says Directorship in Section 8 Companies will not be summed up when the total number of directorships will be calculated i.e. it will not be counted while adhering to the maximum limit of twenty Directorship as prescribed in the Act. Section 149(1) of the Companies Act, 2013 – vide exemption notification dated June 05, 2016, stated that Section 8 Companies are not under obligation to appoint an independent director and are free from all the consequential provisions concerned with Independent directors. Under Section 149(3) – Section 8 company must have a minimum of one Resident Director i.e. a director who has resided in India at least for a total period of 182 days (one hundred and eighty-two days) or more within the previous calendar year. As per the exemption notification read with sections 173(1) and 174(1), Section 8 companies must have at least one meeting within 6 calendar months and the quorum for its board meetings is 8 directors or 1/4th of its total strength, whichever is less, respectively. However, the quorum should have a minimum of at least two members. Here is a list of Monthly, quarterly and annual compliance for section 8 Company under MCA (Ministry of Corporate Affairs) Besides the list of compliance specified above, a Section 8 company might need to function additional compliance chores depending on the situation. (Mandatory = Employees who draw less than Rs. 15000/- per month. Optional = Employees if draws more than Rs. 15000 per month with permission of Assistant PF Commissioner). Q.1 – Is there any limitation upon a Section 8 Company from doing the investments, furnishing the loans, guarantees, etc to other Companies? Yes, Section 8 firm would furnish the loans or guarantees or furnish security associated with the loan or procure through the method of subscription, purchase, etc. the securities of the company but the same must comply within section 180, 185, Section 186, and other sections, whatsoever relevant, of the Companies Act, 2013. Q.2 – If the accounting standards are subjected to apply on the section 8 company? Yes, there is no exemption furnished towards section 8 companies. Q.3 – “Charitable Purpose” meaning with provisionals and sections pertaining 2(15) of the Income Tax Act, 1962? As per Section 2(15) of the Income Tax Act, 1961, “charitable purpose” includes relief of the poor, education, medical relief, preservation of the environment along with the watersheds, forests and wildlife along with the upgraded of the additional object of the general public utility. Q.4 – Does Section-8 Company subject towards any exemptions/ reliefs from payment/applicability of excise duty, service tax, customs duty, deduction of tax at source, collection of tax at source, and others? No particular privilege shall be available towards Section 8 company towards the above-prescribed acts.
Disclaimer:- “All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check.” 32 thoughts on “How to Do Registration for Section 8 Company? New Guide” I want to register from Maharashtra The article is really helpful. Can a state government officer be appointed one of the directors for the company registered us 8? Please contact any practising professional Can we convert a society in to Section 8 company Any registered society can be converted into section 8 company for detail procedure kindly contact any practising professional I want to start a section 8 company. Kindly contact I can help you with Section 8 Company incorporation Does a Section 8 firm have to pay PTRC and PTEC? Pl advise Kindly ask any practising ca or any practising professional Can a section 8 company install a factory and produce items to sell in the market. I am an Indian citizen and partnering with a Europe based Foundation (non-profit) to incorporate a Section 8 company. 1. Can the director of the Europe based Foundation be a representative of the newly forming Section 8 company in India? 2. Can the foreign director (representative of Europe based Foundation) transfer amounts from Foundation to the newly forming Section 8 (after incorporation) – 1. Initial subscription; 2. Subsequent amounts? Does it require FCRA or some other registrations/licenses? 3. How difficult or cumbersome is to get 12AA and 80G, as I heard that the Indian Govt. is not encouraging and not issuing 80G registration from the market? 4. I have been given to understand that FCRA cannot be obtained unless Section 8 company completed 3 years. In which case, how can the newly formed Section 8 company obtain funds from abroad? What options does Section 8 company have? Can ad-hoc permissions be obtained from the Indian Govt. for the inflow of foreign fund transfers? IF YOU PLAN FOR SECTION 8 COMPANY FOR PROMOTING CSR, KINDLY REPLY Very good information, I m going to start soon. Thanks Sir, i want to register section 8 company, can i get the list of attachments and format of the same Sir your information is very good Sir me section 8 company banana chahtahu I am CEO of a charitable trust, Gemmological Institute of India (GII), Mumbai. Is it possible to convert GII into a section 8 company? YES, IT CAN BE CONVERTED is there any precedent case law on conversion of charitable trust into sec 8 company Could Section 8 company be a listed company for its Welfare Products ? Please contact to GST practitioner. I want to registration section 8 company Can do Gold loan business in section 8 a companies? NO Please contact to the Practicing Professional. Where we can get complete rules regarding section 8 companies? SIR, I NEED A LEGAL ADVISOR FOR NIDHI OR MICRO FINANCE COMPANY Sir, want to register a section 8 company here at Kolkata. But need some clarity, may i have your any communication number or mail id, that we can discuss further. Total charge of company registration… What are the maximum changes to register a company under section 8? Please share fees payable with break up and stages of release of fees Thanks. I want registration . How can you help me. I m from Assam. Your email address will not be published.Required fields are marked *
Digital money lenders, popularly known as loan app companies, are playing significant roles in extending credit facilities to the informal sector. While there are now hundreds of companies playing in the digital lending space in Nigeria, the increase in unethical practices of loan recovery through harassment and defamation has prompted the Federal Competition and Consumer Protection Commission (FCCPC) to develop a regulatory framework in collaboration with other industry regulators. Through a Limited Interim Regulatory Framework and Guidelines for Digital Lending, the FCCPC has been registering and approving digital lenders that meet the set standards. While this has succeeded in bringing digital lenders under a form of control, it has not eliminated unethical practices in the market. As of the last count, the Commission has approved over 260 digital lenders that have gone through the registration process. However, checks by Nairametrics show that only a few of these lenders are licensed by the Central Bank of Nigeria (CBN). These set of digital lenders are subjected to guidelines that restrict them to certain ethical and professional practices in the recovery of their loans, unlike the others. The FCCPC also indicated this by granting those licensed by the CBN a waiver under its regulatory framework. Some of the digital lenders under the supervision of the CBN are licensed as finance companies (FCs), while others are licensed as Microfinance Banks (MfBs). Although the CBN database shows that a total of 104 companies are licensed as FCs, and over 600 companies licensed as MfBs, only a few of them are operating in the digital lending space, where personal loans are the core of operations. In no particular order, here are 15 companies licensed by the CBN that are actively providing digital lending services: Fast Credit Limited (FCL) is licensed by the CBN to provide financial services. FCL commenced its operations in August 2014, offering various investment and loan products to both public and private sector employees and small and medium-sized enterprises. The company recently launched digital banking channels such as its mobile app and USSD service, through which it offers micro and nano loans to Nigerians. Baines Credit Microfinance Bank is a financial institution licensed by the CBN. The company says it is committed to solving all the financial needs of salary earners, micro, small, and medium-scale enterprises (MSMEs), and other corporate sectors. The company offers quick digital loans and salary advances for salary earners. GreenBond Finance Company Limited is a CBN-licensed finance company whose core objective is to provide permissible financial services to individuals and business entities. The company says customers can apply for loans 24/7 through its app Apply 24/7 and receive credits in their accounts instantly without a collateral or guarantor. One of its loan services is the Salary Advance, which covers salary advance loans against each monthly salary cycle. Another one is Asset Finance, which is designed to empower salaried customers in the acquisition of home appliances such as electronics, generators, inverters etc. Ekondo is a licensed microfinance bank focusing on the South-South part of Nigeria. The company offers several credit facilities tailored to meet the varying needs of its numerous clients. Its loan offerings include civil servant loans, salary advance loans, and fast cash, among others. Accion MfB Limited began operations in May 2007 on license from the CBN. Aside from its other financial services, the company offers both personal and business loans. Its School Fees Loan, for instance, offers parents and guardians a seamless process to secure quick and easy loans through its website or its mobile app to facilitate school fee payment. Newedge is a financial institution established in 2019 and licensed by the CBN to operate as a finance company in Nigeria. The company provides instant loan services using multiple channels. Its loan apps include: Palm Credit, New Credit, Easy Buy, Xcross Cash, and Xcash. Each of the apps offers a wide range of loans tailored to meet the needs of the customers. Shepherd Trust is a CBN-licensed microfinance bank providing savings, investment, and Loan products to MSMEs For individual loans, the company provides loans to salary earners who must have worked for their current employers for at least 6 months. Firmus is licensed by the CBN as a microfinance bank. The company is providing financial services to individuals and SMEs. According to the company, it was founded as a response to the need for access to banking services for low-income households and businesses. Through its Firmus mobile app, the company offers all kinds of loans such as personal loan, house loan, school, and car loan, among others. Cashbridge is licensed as a Microfinance Bank by the CBN and it offers a variety of loans. According to the company, its loan solutions are designed to make its customers’ dreams a reality. These include business loans, school fees loans, and home loans, among others. Zedvance Finance is licensed by the CBN and it provides instant loans through its MoneyPal App. According to the company, its loans are designed to help its customers achieve their financial goals and are tailored to their specific needs. “With MoneyPal, you can access collateral-free loans quickly and easily, without any paperwork or collateral,” the company stated on its app. Credit Direct Limited is licensed by the CBN as a Finance Company. The company prides itself as a platform “providing quick turnaround loans with little documentation, efficient processes, and top-of-the-range customer service.” The company said its services are hinged on a partnership with employers and its customers to provide friendly innovative loan and investment products. FairMoney is licensed as a microfinance bank by the CBN. As a digital bank focused on lending FairMoney provides instant loans of up to one million naira, as well as a bank account and a debit card. According to the company, FairMoney processes over 10,000 loans every day, with one loan disbursed every eight seconds. Branch International Financial Services is licensed by the CBN as a finance company. Branch says all its customers need to do to get a loan is to simply apply through its mobile app and get approved in under 24 hours. The Branch app determines loan eligibility and personalized loan offers using users’ smartphone data. Carbon is also a popular loan app company in Nigeria. The company is licensed by the CBN as a Finance company. Carbon provides a range of financial services, including personal loans, business loans, payments, funds transfers, credit scoring, savings, and investments. According to the company, loan application process on the Carbon app typically takes less than five minutes to complete. Renmoney is a microfinance bank that offers loans, savings, and banking services. Renmoney is a microfinance bank that prides itself as Nigeria’s most convenient lending company with innovations that deliver outstanding service experiences. The company grants both personal and micro-business loans ranging from N50,000 to N6 million. Links Microfinance Bank is licensed by the CBN. It provides a one-stop approach to banking services, offering savings, loans, and investments through its Sofri mobile app, which was launched in 2022. According to the company, employers can easily approve salary advances for their staff through the Sofri Employer Loan Program.
Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics. Your email address will not be published.Required fields are marked *
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Careers Explore current job openings at Shega. Etenat Awol Addis Ababa, Ethiopia Local business outsourcing and software company, Africom Technologies, is working to register 3.2 million microfinance institution (MFI) borrowers for the Fayda Digital ID. The project, funded by the World Bank and implemented by the National Bank of Ethiopia (NBE) and Ethiopian Enterprise Development, aims to increase access to finance and services for small and medium enterprises (SMEs). Kicking off the project in January of this year, Africom secured the contract after winning a bid for ‘National ID Enrollment Campaign for Microfinance Borrowers.‘ “We have already onboarded 7,000 borrowers and are working with 34 microfinance institutions, including the six recently transformed MFIs such as Tseday Bank, Sinqee Bank, Sidama Bank, and Shebele Bank,” stated Baheru Zeynu, CEO of Africom Technologies. The campaign, running until June 2025, is a part of the Small and Medium Enterprises Finance Project (SMEFP), which aims to enhance access to finance and bolster the capabilities of SMEs. According to Yemenzwork Girefie, Project Coordinator at SMEFP, the project encompasses four key components: financial services to SMEs, creating an enabling environment for SME Finance, business development services, and project management, communication, and impact evaluation. However, the project coordinator has declined to disclose the amount of funding allocated to the microfinance borrowers’ digital ID enrollment campaign. Established in 2004, Africom offers services in various domains, including MIS consultancy, software development, Business Process Outsourcing (BPO), single-window projects, IT auditing, and e-commerce. The recent Financial Stability Reportby the NBE indicates that Ethiopia is home to 47 microfinance institutions, collectively operating 1,109 branches. As of June 2023, the total number of borrowers in Ethiopia stood at 4.4 million, with the majority of these borrowers being clients of MFIs. The report further highlights that the total loan portfolio of MFI borrowers reached 39.1 billion birr in June 2023, marking a significant increase from the 15.6 billion birr recorded in 2019. Borrowers engaged in trade constitute the largest sector (14%), followed by agriculture (7%) and services (5%). Last week, the Ethiopian Bankers Association (EBA) financed 6,000 kits with a cost of one billion birr to accelerate the Fayda registration process. The distribution of the kits to kick off in September is determined by each institution’s financial contribution and overall capacity. The Commercial Bank of Ethiopia will receive the most kits (2,000 out of 6,000) due to its larger financial commitment. Ethio Telecom is also participating in the national digital ID campaign and is using its network of service centers and partners nationwide to drive up registration. The state-owned telco plans to issue one million digital IDs monthly and aims to onboard 32 million of the 90 million targets the country intends to meet by 2028. “Ethio Telecom has already initiated Fayda registration with a limited number of kits it has and plans to deploy 1200 kits, expanding its registration locations from 29 to 900,” stated Abenezer Feleke, Strategic Communications Advisor for National Digital ID. Fayda is also collaborating with various government organizations for registration, including the Ministry of Revenue, the Ministry of Trade & Regional Integration, and the Documents Registration & Authentication Office. Unlike financial institutions and the state-owned telecom, the National ID Project Office will fund the kits for these organizations. To date, the project office has distributed 500 kits and is preparing to distribute 9000 more. Launched in 2022, the national ID program aims to register 90 million individuals for Fayda Digital ID. Equipped with 350 million dollars from the World Bank, it has registered 4.6 million people so far. 👏 😂 ❤️ 😲 😠 Share this post: Etenat Awol Etenat holds a degree in Journalism and her master's in Public Relations. Previously, she served as a university lecturer and has five years of experience in communications, media, digital marketing, and consulting. 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One Ethiopian Startup Is Betting on It 14 January 2025 This Ethiopian Online Platform Offers Building Designs for Sale 13 January 2025 Total Valuation of Ethiopian Startups Passes $300M: Report 12 January 2025 Why Fair Competition is Crucial for Ethiopia's Financial Inclusion Crusade 11 January 2025 Prime Minister Abiy Rings Bell for Ethiopia’s Stock Exchange 10 January 2025 Why Fair Competition is Crucial for Ethiopia's Financial Inclusion Crusade 11 January 2025 Our Favorite Stories from 2024 01 January 2025 The Fiscal Administration of a City: The Case of Addis Ababa with Intra-Continental Insights 26 December 2024 Reimagining Interoperability for Inclusive Payment Systems 22 December 2024 High-Level Starbucks Delegation Visits Ethiopia Under the Radar 20 December 2024 Ethiopia Opens Financial Sector to Foreign Banks 17 December 2024 Ethiopian Investors in Pharmaceutical, Real Estate, Manufacturing Demand Exemptions from Pending Property Tax 15 December 2024 To Ride or Not to Ride? How Ethiopia’s Taxi Hailing Industry Falls Short Protecting Female Passengers 10 December 2024 Trending Work With Us About
The Corporate Affairs Commission (CAC) has said that Point of Sales (PoS) agents of major fintechs in Nigeria including OPay, Palmpay, and Moniepoint, among others, must have registered their businesses by July 7, 2024. The Registrar-General of the CAC, Hussaini Magaji, who disclosed this in a statement issued by the Commission, said this was the agreement with the PoS operators after a meeting in Abuja on Monday. According to him, the registrations is also in line with the legal requirements and the directives of the Central Bank of Nigeria (CBN). Magaji said that the timeline for the registration was not targeted at any groups or individuals but genuinely aimed at protecting businesses. He further stressed that the action was equally backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020 as well as the 2013 CBN guidelines on agent banking. According to the statement, Special Adviser to President Bola Tinubu on ICT development and innovation, Tokoni Igoin Peter, in his remarks at the meeting, pledged to ensure smooth facilitation of the process in line with the Renewed Hope Initiative of the present administration. “several speakers from the fintech industry pledged to collaborate with the Commission to ensure hitch-free implementation of the directive. “Some of them, however, stressed the need for adequate and collective sensitization to ensure that the exercise achieved the desired results,” the CAC said in its statement. CAC disclosed that fintechs represented at the meeting include Opay, Momba; Palmpay Ltd.; Paystack, Fairmoney Micro Finance Bank; Moniepoint, and Teasy Pay. It added that the highlight of the event was the signing of a document by the representatives to support the project. The need to get the PoS agents registered is one of the moves by the regulators to tackle the issue of fraud through PoS. Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics. Your email address will not be published.Required fields are marked *
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Careers Explore current job openings at Shega. Daniel Metaferiya Addis Ababa, Ethiopia Mobile money service provider Kacha Digital Financial Services andDire Microfinance Institution have partnered to launch a digital savings and lending platform. Launched last week, the app, dubbed Dire MFI, enables residents of the eastern region to access two types of non-collateral loans. According to the partnership, Kacha, the first private mobile money service in Ethiopia, provides the platform’s technology, while Dire Microfinance, established in 2003, provides the capital. In a written statement shared with Shega, Kacha stated users can access the service by downloading the app from the Play Store or by using the USSD number *914#. Kacha explained that once users complete the registration process, their information will be stored in Kacha’s Customer Registration and Profiling System (CRPS). After approval, the loan will be credited to their Kacha wallet, and they can then transfer the money to their preferred bank. Mulugeta Abebe, Business Development and Marketing Director at Dire Microfinance said that the partnership with Kacha aims to provide users with loan and savings services without requiring them to visit an office. “We have prepared two options for the loan purpose,” says Mulugeta. “We offer a loan service for employees and another for three-wheeled vehicles (Bajaj) operating in Dire Dawa city.” For the salary loan, access is granted once an agreement between corporates and Dire Microfinance is signed. Mulugeta explained that corporations must agree to pay their employees’ salaries through Dire Microfinance to access the service. Loans can range up to fifty thousand birrs, depending on the salary, and can be taken for a week or up to six months. Corporates assume the risk if users fail to repay the money, he added. The second loan option for three-wheeled vehicles requires users to present verification of motor ownership. Mulugeta told Shega that their institution has already helped many three-wheel motor owners purchase their vehicles with a loan from Dire Microfinance. Owners can upload official documentation showing vehicle ownership on the platform. “We require the plate number and Libre to minimize the risk of losing the money,” he said, adding that they will work with the city’s traffic management system. Mulugeta noted that a digital ID is not mandatory for the loan service. “We accept regular kebele ID, driving licenses, or passports,” he added. The goal is to provide loans for service and repair costs for the drivers, which can reach up to thirty thousand birr and be repaid within six months. Shega was unable to learn the interest rates of the loans. Dire Microfinance by the Dire Dewa City Administration, following a feasibility study identifying gaps in financial inclusion, has over 10,000 borrowers and more than 65,000 savers. 👏 😂 ❤️ 😲 😠 Share this post: Daniel Metaferiya Daniel, a writer and radio host, has a keen interest in technology. Additionally, he has supported various organizations by enhancing their digital presence in his role as a social media manager. Ethiopia Hits 9.7 Trillion Birr in Digital Transactions 31 December 2024 ZamZam Bank Kicks Off Sharia-Compliant Digital Finance in Partnership with Kifiya 28 December 2024 Arifpay Introduces Suite of Solutions 13 December 2024 Regulatory Hurdles Propel Ethiopian Fintech Startup to Neighboring Markets 09 December 2024 Two-Year-Old Fintech Startup SantimPay Posts 86 Million Birr Profit 07 December 2024 Ethiopia Mandates Standard QR Code for Digital Payments 07 November 2024 Hijra Bank Unveils Full-Fledged Sharia-Compliant Digital Lending Platform 21 October 2024 SantimPay Launches Fundraising platform 17 October 2024 Latest Stories 14 January 2025 Ethiopia’s Ministerial Council Votes to Dissolve PEHA Amid SOE Reform Push 14 January 2025 Can Everyday Commutes Be Turned into Delivery Opportunities? One Ethiopian Startup Is Betting on It 13 January 2025 This Ethiopian Online Platform Offers Building Designs for Sale 12 January 2025 Total Valuation of Ethiopian Startups Passes $300M: Report 11 January 2025 Why Fair Competition is Crucial for Ethiopia's Financial Inclusion Crusade 10 January 2025 Prime Minister Abiy Rings Bell for Ethiopia’s Stock Exchange Latest Stories Ethiopia’s Ministerial Council Votes to Dissolve PEHA Amid SOE Reform Push 14 January 2025 Can Everyday Commutes Be Turned into Delivery Opportunities? One Ethiopian Startup Is Betting on It 14 January 2025 This Ethiopian Online Platform Offers Building Designs for Sale 13 January 2025 Total Valuation of Ethiopian Startups Passes $300M: Report 12 January 2025 Why Fair Competition is Crucial for Ethiopia's Financial Inclusion Crusade 11 January 2025 Prime Minister Abiy Rings Bell for Ethiopia’s Stock Exchange 10 January 2025 Ethiopia Hits 9.7 Trillion Birr in Digital Transactions 31 December 2024 ZamZam Bank Kicks Off Sharia-Compliant Digital Finance in Partnership with Kifiya 28 December 2024 Arifpay Introduces Suite of Solutions 13 December 2024 Regulatory Hurdles Propel Ethiopian Fintech Startup to Neighboring Markets 09 December 2024 Two-Year-Old Fintech Startup SantimPay Posts 86 Million Birr Profit 07 December 2024 Ethiopia Mandates Standard QR Code for Digital Payments 07 November 2024 Hijra Bank Unveils Full-Fledged Sharia-Compliant Digital Lending Platform 21 October 2024 SantimPay Launches Fundraising platform 17 October 2024 Trending Work With Us About
Fusion Microfin. Invest wise with Expert advice By continuing, I accept the T&C and agree to receive communication on Whatsapp Sector Open Prev. Close Turnover(Lac.) Day's High Day's Low 52 Week's High 52 Week's Low Book Value Face Value Mkt Cap (₹ Cr.) P/E EPS Divi. Yield All 1 Dec 2024 12:00 AM Board Meeting Agenda : Audited Result 8 Oct 2024 12:00 AM EGM 13 Sep 2024 12:00 AM AGM Announcement Date: 13 Sep, 2024 Fusion Finance shares drop 20% after reporting a Q1 net loss of ₹35.62 crore and a rise in NPAs to 5.46%. Invest wise with Expert advice By continuing, I accept the T&C and agree to receive communication on Whatsapp Foreign: 52.61% Indian: 5.09% Institutions: 22.01% Non-Institutions: 19.90% Custodian: 0.36% Equity Capital 100.22 100.07 81.19 77.3 Preference Capital 0 0 0 0 Reserves 2,747.53 2,221.57 1,255.19 1,167.32 Net Worth 2,847.75 2,321.64 1,336.38 1,244.62 Minority Interest
No Record Found No Record Found No Record Found Annually No Record Found Bajaj Finance Ltd BAJFINANCE 7,150.95 Bajaj Finserv Ltd BAJAJFINSV 1,674.15 Jio Financial Services Ltd JIOFIN 266.15 Indian Railway Finance Corporation Ltd IRFC 128.44 Power Finance Corporation Ltd PFC 389.3 Figures of Market Capital(Mar Cap), Quarterly Net Profit(NP Qtr) and Quarterly Sales(Sales Qtr) are in ₹ Cr. Managing Director & CEO Devesh Sachdev Independent Director Ratna Dharashree Vishwanathan Independent Director Namrata Kaul Independent Director Pankaj Vaish Nominee Narendra Ostawal Nominee Kenneth Dan Vander Weele Company Sec. & Compli. Officer Deepak Madaan Additional Director PUNEET GUPTA
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Tel: – Website: – Email: – Reports by Fusion Micro Finance Ltd Summary Fusion Finance Limited was originally incorporated as Ambience Fincap Private Limited on September 5, 1994 at New Delhi, India as a Private Limited Company under the Companies Act, 1956. Subsequently, name of the Company changed to Fusion Micro Finance Private Limited and a fresh Certificate of Incorporation, dated April 19, 2010 was issued by the RoC to describe the business of the Company, post which the RBI granted a certificate of registration dated May 19, 2010 reflecting the change of name. The name of Company was further changed to Fusion Micro Finance Limited upon conversion to a Public Limited Company on July 20, 2021, post which a fresh Certificate of Registration as an NBFC dated October 1, 2021, was issued by the RBI reflecting the change in name of the Company. Further, the Company name has been changed to Fusion Finance Limited from Fusion Micro Finance Limited effective from July 09, 2024.The Company is primarily engaged in micro finance lending activities, providing financial services to poor women in India who are organized as Joint Liability Group(JLGs). It provides small value collateral free loans. Apart from micro finance lending, it also has lending to MSME enterprises. It uses its distribution channel to provide other financial products and services to the members primarily relate to providing of loans to the members for the purchase of certain productivity enhancing products such as mobile handsets, bicycle, etc.The key product offerings are income-gen Read More What is the Fusion Finance Ltd share price today? The Fusion Finance Ltd shares price on NATIONAL STOCK EXCHANGE (NSE) is ₹174 today. What is the Market Cap of Fusion Finance Ltd? Market capitalization, short for market cap, is the market value of a publicly traded company’s outstanding shares. The market cap of Fusion Finance Ltd is ₹1750.97 Cr. as of 14 Jan ‘25 What is the PE and PB ratio of Fusion Finance Ltd? The PE and PB ratios of Fusion Finance Ltd is 0 and 0.69 as of 14 Jan ‘25 What is the 52 Week High and Low of Fusion Finance Ltd? The 52-week high/low is the highest and lowest price at which a Fusion Finance Ltd stock has traded during that given time period (similar to 1 year) and is considered as a technical indicator. The 52 week high and low of Fusion Finance Ltd is ₹160.68 and ₹674.85 as of 14 Jan ‘25 What is the CAGR of Fusion Finance Ltd? Fusion Finance Ltd’s CAGR for 5 Years at N/I%, 3 Years at -18.91%, 1 Year at -73.59%, 6 Month at -60.77%, 3 Month at -23.68% and 1 Month at -7.73%. What is the shareholding pattern of Fusion Finance Ltd? The shareholding pattern of Fusion Finance Ltd is as follows: Promoters – 57.71 % Institutions – 22.02 % Public – 19.90 % Invest wise with Expert advice By continuing, I accept the T&C and agree to receive communication on Whatsapp Get better recommendations & make better investments Invest wise with Expert advice By continuing, I accept the T&C and agree to receive communication on Whatsapp IIFL Customer Care Number (Gold/NCD/NBFC/Insurance/NPS) 1860-267-3000 / 7039-050-000 IIFL Capital Services Support WhatsApp Number +91 9892691696 Download The App Now
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Banks in India are often on the look-out for potential acquisition opportunities to spur inorganic growth. While their strategic interests will determine their targets, in recent times, banks have been evaluating acquisition of non-banking financial companies (“NBFCs”) and more specifically micro-finance institutions (“MFIs”), which primarily cater to the rural and unorganised markets. Given that NBFCs focus on providing loans to consumers and small-scale businesses, they play a key role in driving the country’s economic growth. India’s NBFC sector grew by 10% (ten percent) in recent times to become the third largest in the world, behind only the United States and the United Kingdom.[1] Among other reasons, access to untapped market with an underserved population and the greater reach of NBFCs is a critical factor, as it facilitates enhanced compliance with priority sector lending requirements of banks. In this blog, we highlight the legal framework, regulatory and commercial considerations involved in the acquisitions of NBFC-MFIs by banks in India. Commercial Considerations In addition to regulatory considerations, there are several commercial aspects that the parties involved will need to factor in while negotiating and implementing such acquisition. Set out below are a few critical practical considerations: Conclusion Given the synergies and benefits for a bank emanating from acquiring MFIs, it is likely that banks may explore such opportunities. While it may seem to be a straightforward M&A strategy for both the financial entities, in light of the discussion above, the legal, regulatory and commercial considerations would need to be dealt with and addressed appropriately in the transaction documents, when assessing such acquisitions. With the assistance of experienced professional advisors, these challenges may be navigated smoothly. [1] See: Non-banking Financial Sector: India’s NBFC sector now world’s 3rd largest, next only to USA & UK, ET BFSI (indiatimes.com) [2] See: https://s.freecharge.in/content/images/shareholderdocs/Annexure-F_Accelyst-Report-adopted-by-Board-of-Directors-of-Accelyst-Solutions-Pvt-Ltd.pdf Partner in the General Corporate Practice at the Mumbai office of Cyril Amarchand Mangaldas. Pranjita advises on mergers & acquisitions and private equity investments and specializes in the financial services sector. She can be reached at pranjita.barman@cyrilshroff.com Principal Associate in the General Corporate practice at Mumbai office of Cyril Amarchand Mangaldas. Aanirud joined the firm in the year 2017 after graduating from West Bengal National University of Juridical Sciences, Kolkata. He advises on mergers & acquisitions and foreign investments in… Principal Associate in the General Corporate practice at Mumbai office of Cyril Amarchand Mangaldas. Aanirud joined the firm in the year 2017 after graduating from West Bengal National University of Juridical Sciences, Kolkata. He advises on mergers & acquisitions and foreign investments in India, with a greater focus on the Indian insurance sector. He has worked on several transactions in relation to acquisition of private and public companies, business transfers and initial public offerings (including the IPO of Life Insurance Corporation of India). Anirud regularly advises insurers and insurance intermediaries in relation to, amongst other aspects: Corporate Governance, General Corporate Strategies, Business Ventures and Partnerships, Distribution and other forms of engagement between insurers and insurance intermediaries and Data Protection, Data transfer, Data Localisation. Ayushi is a Senior Associate with Cyril Amarchand Mangaldas and is a part of the General Corporate practice in the Mumbai region. She joined the firm in the year 2020 after graduating from National Law University, Delhi. She is involved in advising private… Ayushi is a Senior Associate with Cyril Amarchand Mangaldas and is a part of the General Corporate practice in the Mumbai region. She joined the firm in the year 2020 after graduating from National Law University, Delhi. She is involved in advising private and public companies, key Indian financial institutions (including banks) on mergers & acquisitions, business alliance, restructuring, and foreign investments in India, with a special focus on the insurance sector. She can be reached at ayushi.agrawal@cyrilshroff.com
