MFIs started raising interest rates after Congress came to power, says Yanamala
Lambasting the State government for holding the Telugu Desam Party (TDP) responsible for entry of Micro Finance Institutions (MFIs) into the State, Polit Bureau member of the party Yanamala Ramakrishnudu on Sunday demanded that the government order the complete waiver of loans issued by the MFIs to the poor, besides putting a cap on the rate of interest on micro loans and de-register the MFIs that were converted into companies.
Mr. Ramakrishnudu, at a press conference here, said that Youis Sultan of Bangladesh had introduced the concept of MFI first and the United Nations asked all the developing nations to implement it in their respective countries. “Both the MFIs and the women self-help groups entered into our State at a time. Initially, the MFIs functioned on no-profit no-loss basis. When the Congress was voted to power in 2005, the MFIs began to increase their rate of interest,” he said, adding that the ‘Velugu' scheme launched by the TDP was converted into ‘Pavala Vaddi' by the Congress.
Holding the Reserve Bank of India (RBI) responsible for the present crisis, Mr. Ramakrishnudu said that it was unfair on the part of the RBI to give an opportunity to the MFIs to decide the rate of interest.
“It gave a chance to the MFIs to charge exorbitant rates of interest. SKS Micro Finance alone earned a profit of Rs. 174 crores in the last financial year and distributed dividends to its shareholders, which are none other than multinational companies,” he said.
Making it clear that the TDP was supporting the MFIs, he demanded that the government and the RBI keep a tab on the activities of the MFIs and make them work for the welfare of society.
Referring to the issue of renaming of Telugu Lalitha Kalatoranam in Hyderabad as Rajiv Gandhi Lalitha Kalatoranam, Mr. Ramakrishnudu said that by removing ‘Telugu' from the name, the State government hurt the sentiments of crores of Telugu people.
He demanded that the government immediately withdraw the orders pertaining to the renaming of the open-air auditorium in the State Capital.
Former MLA Vanamadi Venkateswara Rao, party's city unit president Dusarlapudi Ramana Raju and others were present.