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Govt responsible for deaths due to MFIs harassment: Babu

Thu 14th Oct 2010 11:53 AM
Govt responsible for deaths due to MFIs harassment: Babu
Govt responsible for deaths due to MFIs harassment: Babu

Telugu Desam Party president N Chandrababu Naidu on Thursday stated that the government should be held responsible for the deaths which have occurred due to the callous nature of the Micro Finance Institutions (MFIs).

Talking to media persons at the NTR Trust Bhavan after admitting a group of Praja Rajyam Party activists from Kukatpally into the party fold, Mr Naidu stated that if the Reserve Bank of India has taken proper measures before giving permission for MFIs, the crisis would not have been risen at all.

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The exorbitant interest rates—40 to 60 percent charged by MFIs has forced hapless women and rural folk to commit suicides unable to repay their loans, the TDP chief stated.  

The government should be held responsible for deaths caused due to abusive nature of the collection agents of the MFIs in recovery of loans from the victims, he stated.

The former chief minister demanded that the government waive off loans of women and villagers availed from the MFIs on high interest rate and make arrangements to provide proper financial assistance to people, who are in dire need of money.

The TDP chief stated that both Centre and State Government should make concerted efforts in making laws protecting the interests of women and villagers, who avail loans from private firms.

Mr Naidu urged the government to ensure that MFIs, in the name of lending to the needy, will not fleece customers and should not resort to goondaism while recovering loans.

He also appealed to RBI to come out with steps to regulate the activities of microfinance institutions across India in the wake of  harassment meted out victims by recovery agents.