MFIs’ deposit taking licence deadline ends
BANK of Uganda (BOU) wants all micro-finance institutions (MFIs) to apply for Micro Deposit-taking Institution (MDI) licences as required by the law.
By Teopista Nankya
BANK of Uganda (BOU) wants all micro-finance institutions (MFIs) to apply for Micro Deposit-taking Institution (MDI) licences as required by the law.
The MDI Act, which came into force on July 1, 2003, stipulates that any person/institution carrying out micro-finance business shall apply for a licence within 24 months from the commencement of the Act. The 24 months ended on June 30, 2005.
BOU’s acting director of public relations, Sam Katwere, said all unlicensed institutions should comply.
“Unlicensed institutions can either refund the deposits so far accepted or apply for a licence from Bank of Uganda if they meet the requirements of the MDI Act,†Katwere said.
There are about 1,340 MFIs but only three have acquired the licence. These are, FINCA Uganda, Pride Micro Finance and Uganda Micro Finance Union.
According to the law, taking micro-deposits by unlicensed MFIs after July 1 is an offence.
The licensing criteria involves analysing the institution’s financial capacity, reputation, experience, capacity of the owners, directors and board members, scope of operations and services to be offered.
Ends
BANK of Uganda (BOU) wants all micro-finance institutions (MFIs) to apply for Micro Deposit-taking Institution (MDI) licences as required by the law.
The MDI Act, which came into force on July 1, 2003, stipulates that any person/institution carrying out micro-finance business shall apply for a licence within 24 months from the commencement of the Act. The 24 months ended on June 30, 2005.
BOU’s acting director of public relations, Sam Katwere, said all unlicensed institutions should comply.
“Unlicensed institutions can either refund the deposits so far accepted or apply for a licence from Bank of Uganda if they meet the requirements of the MDI Act,†Katwere said.
There are about 1,340 MFIs but only three have acquired the licence. These are, FINCA Uganda, Pride Micro Finance and Uganda Micro Finance Union.
According to the law, taking micro-deposits by unlicensed MFIs after July 1 is an offence.
The licensing criteria involves analysing the institution’s financial capacity, reputation, experience, capacity of the owners, directors and board members, scope of operations and services to be offered.
Ends