Telugu Desam Party (TDP) president N Chandrababu Naidu on Friday criticised the Reserve Bank of India (RBI) for adopting double standards towards microfinance institutions.
Talking to media persons at NTR Trust Bhavan before leaving for Medak district to disburse compensation to the next of kin of MFIs victims, Naidu charged the RBI of failing to put a proper policy on interest rates in place, resulting in the MFIs remaining unchecked.
The TDP chief asked the RBI to frame stringent rules and regulations and harness the MFIs.
The former chief minister also vented his ire on the government by charging it of neglecting the hapless people who had fallen victim to the arm-twisting methods of the microfinance companies. He stated that the MFIs were resorting to manhandling their debtors who were unable to pay the loans taken with exorbitant interest rates.
The TDP chief also charged the MFIs of looting poor and rural folk by charging high rates of interest and abusing them mercilessly by deploying agents. The hapless victims were ending their lives as the police were not booking any case and taking action against MFI agents, he said.
Naidu added that the government had lost control over the affairs of MFIs and washed its hands off the affair by just promulgating an
ordinance. Without fixing interest rates and regulatory measures, the ordinance would not serve any purpose, he pointed out.
The TDP chief also compared the agents of the MFIs to gang members of a mafia, and vowed that his party would create awareness about MFIs issue among people.
Courtesy: INN