More than 130 micro-finance institutions (MFIs) have faced the axe from the Microcredit Regulatory Authority (MRA) for breaching relevant rules and regulations.
The MRA has taken such punitive action against the institutions which were in operation until February 22 this year.
The regulator has so far cancelled the operating licences of 134 MFIs, according to an official concerned.
It has issued licences to 746 until the period in question, he says.
"We remind the MFIs repeatedly of following the MRA directives. If they don't pay any attention, the country's central body of the MFIs cancels their licences," a senior official said.
The MRA prioritises eradication of poverty, protection of client interests and fostering sustainable development of the country by ensuring transparency in MFI operations and their accountability.
The MRA scraps licences of the MFIs mostly for misusing funds in breach of related rules, the official mentioned.
The rate of interest on micro-loan was higher than that of other credits at the end of June 2018.
Disbursement by registered MFIs increased to Tk 1403.17 billion at the end of June 2019 from Tk 1201.91 billion at the end of June 2018.
The total number of loan recipients rose to 25.76 million in June 2019 from 25.40 million in June 2018, according to the latest data released by the MRA.
The micro-credit regulator also showed that the total number of members of MFIs jumped to 32.37 million at the end of June 2019 from 31.22 million a year back.
The number of MFI branches increased to 18,977 as of June 2019 from 18,196 a year earlier.
On the other hand, the number of MFI employees rose to 162,175 in June 2019 from 153,919 in June 2018.
The number of micro-credit beneficiaries has mounted mainly due to the government's good policy for the sector, according to a senior MRA executive.
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