Dhaka, July 28 -- The government has initiated a move to reduce the current 24 per cent service charge applied by microfinance institutions (MFIs) in a bid to make microcredit more affordable for low-income borrowers, especially those at the bottom of the economic pyramid.

To this end, the Microcredit Regulatory Authority (MRA) has formed a high-powered nine-member committee, headed by Dhaka University professor M Jahangir Alam Chowdhury, to prepare recommendations for a rationalised service charge.

An additional representative from the Financial Institutions Division (FID) will also be included. The decision to form the committee was taken at the MRA's 76th board meeting, and the panel list has recently been submitted to the FID.

The ...