Hyderabad, October 29: The state government on Thursday constituted four committees for effective implementation of micro finance institutions (MFIs) ordinance promulgated recently.
It is also aimed to deal with many queries from both the MFIs and the district-level registering authorities about the provisions in the ordinance.
The committees will work to improve credit flows to self-help groups (SHGs) and to put the Information Technology system in place.
The implementation committee will be responsible to receive and clarify queries, review complaints from public against the MFI irregularities and ensure swift action.
It will also work in tandem with banks to improve the credit flow to SHGs and discuss with MFIs for better implementation of the ordinance.
It will also guide the remaining three committees namely Legal Committee, Capacity Building Committee and IT Committee in dealing with legal disputes, educating the SHG members about the provisions of the ordinance and create a consolidated database on rural indebtedness respectively.
The committees will also create and maintain the website for MFIs integrating the databases of SHG bank linkage, ration cards and borrowers’ data being submitted by MFIs, so as to arrive at an integrated database of rural/urban indebtedness.
They will also finalise the reports which can show details of multiple lending, excessive indebtedness, and irregularities.
All committees will submit daily reports to the chief executive officer of Society for Elimination of Rural Poverty (SERP) and the principal secretary for rural development on implementation of the ordinance.
–Agencies