"You need a legal framework to make a depository bank for running micro-credit programme and it is essential," he said while speaking as chief guest at the inaugural ceremony of the Grameen Trust India (GTI) and a two-day Grameen International Conference on "Micro-credit in India" at Hotel Mirador.

Prof Yunus said money is not a constraint to make it happen if there is a legal framework in the country. He inaugurated the programme by lighting a lamp.

"You can make a legal framework for five years to see how it works. If any organisation fails to run the micro-credit programme, you can cancel its legal status to run the programme," Prof Yunus said. "But you have to enact the law immediately."

Referring to an Indian government move to enact a law relating to micro-credit, he said it must be ensured that the law is not harmful to the micro-credit programme.

Prof Yunus mentioned that India must not miss the rare opportunity to start the micro-credit programme right now, as poverty has become a stronger issue in India than ever.

About the micro-credit programme in India, he said the officials of the micro-credit programme must not look after the past of the borrowers. "I don't think about the past of a borrower, she/he can be a thief or murderer in her/his past life. I am not in a business of exclusion... I am in the business of inclusion."

Recalling his recent talks with various ministers of the Indian government, he said Prime Minister Manmohan Singh and Congress President Sonia Gandhi have expressed their immense interest in the micro-credit programme in India.

Chairman of Nabard, India, YSP Thorat attended the inaugural ceremony as the special guest.

Grameen Trust Managing Director Professor HI Latifee, SHARE (India) Managing Director Udiya Kumar and Grameen Trust India Director BN Kulkani, among others, spoke on the occasion.

The plenary sessions of the two-day conference are "Present status and future prospects for micro-credit in India", "Challenges of reaching the poorest with micro-credit in India", "Regulatory and legal issues facing micro-finance development in India" and "Participation of commercial banks and other financial institutions in micro-finance development in India".

Grameen Trust India (GTI), which began operation on January 1 this year, is a liaison office supporting the micro-finance activities in India. Former general manager of the National Bank for Agriculture and Rural Development (Nabard) Dr BN Kulkarni is heading GTI as its director.

The next Grameen Trust is likely to be inaugurated in Beijing in China, according to the trust officials.