Hyderabad, October 24: Armed with the ordinance, the State government today directed the district collectors to act tough against the microfinance institutions (MFIs) that are fleecing poor borrowers, particularly in rural areas. The collectors were asked to be vigilant and take all measures to keep a tab on MFI activities. They were also directed to work in tandem with the banks and increase institutional lending to the poor.
In a video-conference with collectors today, chief minister K Rosaiah said many persons, including women members of Self-Help Groups, had committed suicide in the past few days due to harassment by MFIs for non-payment of instalments. “The MFIs are not authorised to charge exorbitant rates of interest and recover dues from the borrowers through illegal means. Now that an ordinance has been promulgated with wide-ranging powers, the collectors should be vigilant and take every legal step to keep a tab on the activities of MFIs,” the chief minister said. Stating that MFIs should not be allowed to operate without registering themselves with the specified authority, Rosaiah said any violation of the ordinance by MFIs should be dealt with seriously. The High Court orders issued yesterday also supported the ordinance, he said. He wanted the collectors to convene a meeting with bankers and speed up lending to the poor.
MSP for paddy
With fresh stocks scheduled to arrive in the market in two or three days, the chief minister directed the collectors to ensure that farmers got the minimum support price for paddy. “There should be no room for any complaints. Take all steps required to ensure that farmers got the MSP. The millers and traders should be prevented from exploiting farmers,” he said. He wanted women self-help groups to be involved in paddy procurement process. He also clarified that the government was not ready to fulfill all the demands of millers.
As against the 220 lakh metric tonne of food grain output expected this kharif season, the State government had godown space available for only seven lakh MT. The collectors had been asked to temporarily hire private godowns to get over the storage problem. The State government had already sought the Union government to shift rice stocks from state godowns at the earliest.
Rosaiah said Jawahar Bala Aarogya Scheme for school children would be launched on November 14.
–Agencies