Hyderabad, Oct. 12: Maintaining that only the Reserve Bank of India could curb the illegal activities of Micro Finance Institutions, the Chief Minister, Mr K. Rosaiah, said on Tuesday that the state would bring an ordinance soon to rein in the MFIs within its powers.
Talking to newsmen in New Delhi after meeting the Prime Minister, Dr Manmohan Singh, Mr Rosaiah said that the state government could not ban the MFIs since they came under the category of Non-Banking Finance Companies (NBFC) under the supervision of RBI. He assured that the state would do whatever possible to curb harassment of individuals by MFIs.
“We cannot wait till the RBI or the Centre acts on this. Incidents of harassment of individuals are increasing daily and we are in the process of obtaining legal opinion to bring an ordinance,’’ Mr Rosaiah said.
In a separate media conference in Delhi, the minister for rural development, Mr V. Vasanth Kumar, said that the state government had already instructed district collectors and SPs to take action against each incident of harassment by MFIs. He said the harassment was mainly due to MFIs extending loan facilities to members of SHGs sponsored by the government and encouraging dual membership. He said there were incidents of MFIs collecting interest at the rate of 50 per cent.
0 comments:
Post a Comment