The state government has decided to introduce a bill to replace the ordinance on Microfinance Institutions (MFIs).
At an emergency Cabinet meeting held at the Secretariat on Friday, Chief Minister N Kiran Kumar Reddy told the ministers that it was essential to introduce a bill in the Assembly.
Briefing media persons after emerging from the meeting, Minister for SHG and Women Development Sunitha Laxma Reddy revealed that KKR was keen on introducing a bill to protect the interests of the poor who were being fleeced by MFIs.
As many as 96 lakh people have availed themselves of the loans, she revealed. Most of them took Rs. 50,000 as loan and the repayment was on a monthly basis.
She said that so far 75 suicides have come to the notice of the government.
Out of 273 MFIs, 270 have registered with the authorities. A team from RBI was also coming here to investigate the MFIs issue, she revealed.