Microfinance Institutions seek to create social benefits and promote financial inclusion by providing financial services to the un-served and underserved segments of society. Over time, the  industry  has become integral  to the national financial infrastructure. Hence, an even greater responsibility devolves on this industry to deliver financial products and services to its clients in a fair and transparent manner. 

 Microfinance Institutions Network (MFIN) and Sa-Dhan, the two national industry associations of microfinance institutions in India, have collaborated to create a unified Code of Conduct for their member institutions. The Code of Conduct was released on December 13th, at the Microfinance India Summit 2011 in New Delhi. The Code of Conduct seeks to ensure that microfinance services are provided in a manner that is ethical and transparent and  benefits clients in a holistic manner.

 The Code of Conduct for Microfinance Institutions in India lays special emphasis on client protection and good governance, illustratively:

• Mandatory training on CoC for MFI staff and awareness building for clients

• Privacy of confidential client information

• Mandatory client data sharing with Credit Bureau

• Good governance structure for Member MFIs

• Client education

Download a PDF copy of Code of conduct : Click