{"id":255855,"date":"2016-10-07T15:02:43","date_gmt":"2016-10-07T15:02:43","guid":{"rendered":"http:\/\/citifmonline.com\/?p=255855"},"modified":"2016-10-07T15:02:43","modified_gmt":"2016-10-07T15:02:43","slug":"govt-interference-in-dkm-acceptable-world-bank-executive","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2016\/10\/govt-interference-in-dkm-acceptable-world-bank-executive\/","title":{"rendered":"Gov\u2019t interference in DKM acceptable – World Bank Executive"},"content":{"rendered":"
The Global Lead for Credit Infrastructure at the World Bank, Mahesh Uttamchandani has described as acceptable , government’s intervention \u00a0in the DKM microfinance scam to help customers get back their investments.<\/p>\n
According to him, unlike corporate private entities, an insolvency involving financial institutions like DKM, have larger societal impact which have dire economic implications.<\/p>\n
\u201cA regime for insolvency for financial institutions has to involve the public protection component which is very different from a traditional corporate insolvency…typically one finds a financial institution in insolvency regime involves an element of conserved ownership by the government or an arm of government,\u201d he stated.<\/p>\n
Over 70,000 customers of DKM microfinance are awaiting payments of their locked up cash after the company suspended operations about a year ago.<\/p>\n
Government through the Registrar General’s department is expected to carry out the repayment exercise.<\/p>\n
The Financial Sector Specialist also explains to Citi Business News<\/strong> international standards permit public protection from government\u2019s due to the strategic importance of such cases.<\/p>\n