Responsible Finance in India: Lessons for Rwanda

This learning brief is based on the lessons that emerged during a study program attended by a Rwandan delegation to New Delhi, India in August 2017. The objectives of the program were to:

• Understand how consumer protection policies and practices are embedded in the core policies of microfinance associations in India and how they translate at the level of microfinance institutions.
• Understand the associations’ strategies around responsible finance practices and their systems and processes to ensure the adoption of these practices.
• Have a broad understanding of the policies and procedures of some pioneering MFIs.
• Understand the Central Bank’s policies around consumer protection.
• Understand the role of key donors and investors in furthering the field of responsible finance through various sector stakeholders.
• Suggest a roadmap for incorporating best practices.

The brief begins by explaining the evolution of the Indian microfinance sector, and the reasons why responsible finance has gained increased attention and commitment from different actors in the sector. It then goes on to explain the role of those different actors in furthering responsible finance in India, ending with next steps for the Rwandan sector based on lessons from the Indian experience.