State urged to rein in MFIs

Representatives of several women's backward classes organisations at a meeting here on Friday demanded stringent action by the Government against Micro Finance Institutions (MFIs) for committing irregularities and harassing women beneficiaries, leading to suicides.

The meeting, organised by the Andhra Pradesh State BC Welfare Association, alleged that MFIs were charging 35 per cent interest, as against 12 per cent by banks, and resorting to forcible recovery employing ‘goonda' elements. As a consequence, several victims have ended their lives and attempted suicide.