White paper sought on extension of financial aid to MFIs
TRS district in-charge and former MP B Vinod Rao had demanded that the Union government, Reserve Bank of India and Nabard (National bank for agriculture and rural development) should release a white paper on the extension of financial assistance to the Microfinance institutions (MFI).
Talking to newsmen here on Sunday, he also demanded an inquiry through Joint Parliamentary Committee (JPC) into the MFI financial scam, which was bigger than the Harshad Mehta financial scandal. He charged that the MFIs have violated the RBI norms of providing about 40 per cent loans to priority sector. He alleged that several nationalised banks and private banks have provided financial assistance to the MFIs without any collateral securities violating the RBI norms.
Flaying the State government for issuance of ordinance to check the MFI menace, he said that the ordinance does not have any teeth and it would not check the irregularities of the MFIs. He said that the MFIs have diluted the women self-help group movement. He also demanded that the Union finance minister should discuss the issue in parliament and invoke an act to regulate the MFIs. MLC N Laxman Rao, TRS leaders S Ravinder Singh, K Satish, Md Arif and others were also present.