New Delhi, June 4 (IANS): The World Bank Thursday approved two projects on microfinance and reforming government statistics sector in India worth $407 million.

A statement from the bank's Washington headquarters said a loan of $300 million was for the Scaling up Sustainable and Responsible Microfinance project and $107 million was to strengthen the statistical sector.

According to the Bank, the funding for the microfinance project will be used by Small Industries Development Bank of India for on-lending to Indian microfinance institutions.

"The project will also support responsible finance initiatives such as the establishment of a microfinance information platform and promotion of adherence to a code of conduct for MFIs (microfinance institutions), as well as for capacity building and monitoring," it said.

The second loan for $107 million will support the Indian government's plan for institutional and policy-based reform of state statistical systems within a national policy framework.

"A renewed and modernised statistical system has become essential in order to measure rapid economic and social change, monitor the effects of reform, and to calibrate policy change both in the states and at the centre," the bank's senior economist and project team leader Farah Zahir said.

The project will enable states to work towards "common national standards relating to key statistical activities and to improve the credibility, timeliness and accuracy of these and other statistics at both central and the state levels".