Publication

Abstract : RBI released the Malegam Committee Microfinance Report on 19.01.2011 which has given recommendations regarding creation of NBFC-MFIs; recommendations to mitigate problems of multiple-lending, over borrowing, ghost borrowers and coercive methods of recovery. However, successful implementation of these recommendations by the MFIs will depend on how the recommendations are being perceived by the MFIs and their willingness to incorporate them fully or partially in their future strategies. The present case study developed from primary and secondary data aims to highlight the reactions of four different MFIs to the Malegam Committee recommendations. The authors try to focus on the importance of the Personality profile of the MFI-decision maker, Organizational Personality, unique business context and the present financial and social performance of the respective MFIs in influencing its perception and interpretation of the Malegam Committee recommendations and hence determining its survival strategies thereof. The findings are interpreted based on theories of environmental scanning.