If an NGO registered under the Voluntary Social Service Organizations (Registration and Supervision) Act No. 31 of 1980 engages in microfinance, it is called a microfinance non-governmental organization. Those organizations should be obtained the registration with the National Secretariat for Non-governmental Organizations under the Microfinance Act No. 06 of 2016.
Documents to be submitted with Microfinance NGO Registration Application
(as mentioned in Gazette No. 2048/15)
A certified copy of the Certificate of Registration / Incorporation.
A certified copy of the Constitution, Memorandum and / or articles of Association.
Affidavits and declaration of the directors in the board of management, CEO/ General Manager and person selected for such appointment as per Schedule I (A) and Schedule I(B).
Certified copies of valuation reports of each revalued immovable property.
Audited financial statements of the applicant NGO and its holding NGO for the last three years.
Financial statements of the applicant NGO as at the end of the month immediately preceding the month in which the application is made.
Organization chart of the applicant NGO.
A copy of the manual of operations of the applicant NGO.
A projected financial report for the first 2 years of operation after obtaining registration.
Statement of the Board of Directors in respect of the NGO’s ability to comply with the Directions issued and Rules made under the Microfinance Act No.6 of 2016.
Evaluation Fee
Each national level NGO shall pay twenty thousand rupees (Rs. 20,000.00) and each district level NGO shall pay ten thousand rupees (Rs. 10,000.00) as a non-refundable evaluation fee to the account of the National Secretariat of Non-Governmental Organizations at the time of submitting the application and should send the bank receipt to this Secretariat.
Initial registration Fee
In obtaining registration, a national level Microfinance Non-governmental Organization shall pay an initial registration fee of twenty thousand rupees (Rs. 20,000.00) for the year of registration, and a district level Microfinance Non-governmental Organization shall pay an initial registration fee of ten thousand rupees (Rs. 10,000.00) for the year of registration.
The bank receipt should be sent to the National Secretariat on or before the date of registration.
Regulatory reports to be sent after obtaining registration
According to the Gazette No. 2048/15 issued on 04.12.2017, a microfinance Non-governmental Organization should submit following reports after obtaining the registration.
A minimum liquid asset ratio should be maintained as per Rule No. 08. For that, the form mentioned in the Gazette should be filled and sent in every month.
As per Rule No. 09 under the regulatory framework for credit facilities the form mentioned in the gazette should be filled and sent in every quarter.
Statement of financial position and statement of comprehensive income should be sent quarterly and annually for the purpose of providing information as per Rule No. 10.
Annual registration fee
Every microfinance NGO is required to renewal its registration by paying a registration fee based on the organization's total assets for each subsequent year after obtaining registration.
Total Assets as at the end of last year | Annual Renewal Fee |
|---|---|
Rs.5 million or below | 5,000/- |
Above Rs.5 million up to Rs.10 million | 7,500/- |
Above Rs.10 million up to Rs.15 million | 10,000/- |
Above Rs.15 million up to Rs.20 million | 12,500/- |
Above Rs.20 million up to Rs.50 million | 15,000/- |
Over Rs. 50 million | 20,000/- |
Cancellation of license
The registrar has the cancellation power of a registered microfinance NGO under the Microfinance Act No. 06 of 2016. The procedure for revocation of license has mentioned under Sections 27 (1) to (6) of the said Act.