Don't make fortune out of poor: Rajan to micro lenders

 

MUMBAI: Asking micro-lenders to look at only a "reasonable profit" to sustain their business while serving borrowers at the bottom of pyramid, RBI Governor Raghuram Rajan has said that one should not think of making a fortune while serving poorest of the poor.

The comments come in sharp contrast to management guru late CK Prahalad's views in his book 'The Fortune at the Bottom of the Pyramid'.

The concept of the fortune at the bottom of the pyramid originally appeared in an ar ..

Following the advice of Prahalad, many companies across the world and especially consumer goods, auto and telecom marketers in the country, have begun to tap the underserved markets and made a big market out of them, Rajan said.

He added however that reasonable profit must be there at the bottom of the pyramid as the business has to be self-sustaining.

"If business is not self-sustaining, then entities will make a pretence of doing the business, but they are not really going to ..

Comment: My sense is that you cannot, in good conscience, make a fortune at the bottom of the pyramid. Make reasonable profits, but if you start making a fortune, it does start raising societal anxiety about how the fortune is being made

Muntazir alam  

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