This law applies to every deposit-taking microfinance business, and non-deposit taking microfinance institutions. It outlines all licensing, supervisory and governance provisions needed for the appropriate establishment of microfinance institutions.
Among its most important clauses, this law establishes that:
The Central Bank shall collect any information necessary to enable its supervision and surveillance of regulated institutions and their agencies. For this purpose, the Central Bank may require an institution to submit statistical and other returns on a periodic basis, in addition to any other returns required by law.
When an institution becomes insolvent, the Central Bank may appoint the Deposit Protection Fund Board to be a liquidator of the institution. The appointment shall have the same effect as the appointment of a liquidator made by a High Court. This provision is supported by the content provisions of the Companies Act.