A bench of the State High Court, on Friday, directed microfinance institutions (MFIs)to recover their loans from Self Help Group (SHG) members and rural folk without resorting to arm-twisting measures.
The bench, after hearing the writ petition filed by MR Rao on behalf of SKS Microfinance Limited, challenging the constitutional validity of the ordinance issued by the State government to regulate microfinance institutions, issued interim directions in this regard.
The court directed the MFIs to continue their operations as usual. However, they should not resort to forcible recovery of loans. If any organization resorted to such tactics, cases could be booked against such firms, the court stated.
The court, in its interim orders, directed the firms to register their organizations with concerned officials by 1 week. If any firm violates these directions, the police can register cases against them.
The court adjourned further hearing on petition for 2 weeks as the state government was yet to clarify its stand on actual interest and minimum interest charged by the finance institutions, the subject being within the purview of the Reserve Bank of India (RBI).
The RBI has already constituted a sub-committee headed by YH Malegam to study the issues and concerns relating to the MFIs including the interest rates charged by them, which would submit its report in 3 months to the government.
now a days i think mfi are creating problem for the poor people.
the main problems are...as follows 1-the interest rste(taking(50 to 80%) 2-coercive method of recovery. 2-other chareges like LPF,insurance,other products etc...tf you calculated all these expenses then it nearly about 80%...which is more for poor people. 4-their process of lending is not clear yet. 5-they are cheating poor people. 6-their business should stopped.othe wise the suicide issue will more pathetic for govt as well as for others, 7-they are taking some hidden chareges,,which are not ethical in nature. 8-make them out of country. krishna (Orissa)
this not national loss...it is only sks loss....this is the reward to sks,basix,spandana for their livelihood promotion..make out these lending organization out of india...what our minister are doing...they are waitning for another suicide or what?..do nt give any sympathy to these money lender...make them out from lending businee...they only want their profit..that will come any way...wheather people suicide or what....basix is a fake company...i request minister to check bit by bit process use by basix operation...you definitely get ur answar...but their punch line is livelihood promotion....basix harash a customer in orissa recent...for insttalment....the next day that farmer in bargarh (orissa) has suicide...basix has show iths reputation on recovery...no no they teache us haow to take much profit from the poor people and also kill them...before taking decision on mfis isuee the ministers and the hcourt should know that india is agricularal nation...60% of the nation depend on agriculture...so make other way of lending and so stop mfis busineess in oue country...they will kill all farmers and poor people of our country....orissa govt still sleeping and waiting for another suicide case…that’s why they are at last ranking in development…thanx to ap minister for helping the poor…they are really heros ….and ideal minister of our country…
1--to stop the business of mfi as soon as possible...other wise they will kill the poor people..they need nt required regulation..by this the moneylender will hamper the rural people..the same problem is in ORISSA,BIHAR,CHAISGARH,BEGAL,MAHARASTRA...etc..due to no control on mfis. 2-they taking much more interest beyond the expectation.nearly 80%.i survey the system foolow by BASIX in orissa if u take loan @15000/- then u have to deposite advace the following; LPF(loan processing fund)-500/- security 10% of the principal adbds product cost450 which is a fake product=500 1500 450=2450 in advance then come to recovery process-
they taking 1800 in the form of interest 1000 for insurance chager=2800/= after taking the loan.
in an agreegate they are taking.--2800 2450=5250/- with out any investment.
the borrower are taking loan 15000 and taking 10000 to home and have pay the insttalment for 15000/-
they are collecting monthly...still their is no reduction in interest.
that why i am requesting u to stop mfi instead of made a regulatory body for the. give chance to bank to reach to the poor in steade of these moneylenders. BIJAYA(Orissa,anugul)
they doing this lending business in a smart way...they are very smart.they are killing poor people,farmers of our country
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