DELHI: The World Bank Thursday approved two projects on microfinance and
reforming government statistics sector in India worth $407 million.
statement from the bank's Washington headquarters said a loan of $300
was for the Scaling up Sustainable and Responsible Microfinance project
million was to strengthen the statistical sector.
According to the
Bank, the funding for the microfinance project will be used by Small
Development Bank of India for on-lending to Indian microfinance
"The project will also support responsible finance
initiatives such as the establishment of a microfinance information
promotion of adherence to a code of conduct for MFIs (microfinance
institutions), as well as for capacity building and monitoring," it
The second loan for $107 million will support the Indian
government's plan for institutional and policy-based reform of state
systems within a national policy framework.
"A renewed and modernised
statistical system has become essential in order to measure rapid
social change, monitor the effects of reform, and to calibrate policy
both in the states and at the centre," the bank's senior economist and
team leader Farah Zahir said.
The project will enable states to work
towards "common national standards relating to key statistical
activities and to
improve the credibility, timeliness and accuracy of these and other
at both central and the state levels".