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CGD Policy Blogs

 

Turf War over Deposit-Taking in India

After the crisis broke in Andhra Pradesh, many observers regretted that India's microfinance industry was legally confined to making loans. Many poor people would rather save than borrow because, when done right, savings is safer. In the Huffington Post, Elisabeth Rhyne went further. The inability to take savings not only deprived poor people of a valuable option; it contributed to the crisis on the credit side: