Interest cap of MFIs: govt hopeful

Reacting to the recent Ordinance on the MFIs, the RBI will be shortly sending its recommendations to the Central government on the Interest Cap, which assumed significance in the light of suicides occurring in the districts.

Once the centre okays the RBI step, the state government will introduce a Bill seeking an Act on the Interest Cap, said four ministers here on Monday.

Addressing a press conference, Gade Venkat Reddy (Endowments), Geetha Reddy (I&PR), P Ramachandra Reddy (forest) and Mopidevi Venkataramna (law and technical education) said that the government was serious about the burning issue and as well RBI Governor Duvoori Subba Rao, who hails from AP.

"We are going to enact an Act on it," said the Ministers. Stating that the state tops in the SHGs strength in the country, there was delay only for obtaining clarity on the interest rate, said Ms Geetha Reddy.

“While we are engaged in this programme it is not proper for opposition leader (TDP) Muddu Krishnamanaidu to resort to criticism stating that people will take broomsticks and go after the Congress leaders on the issue,” the Ms Geetha Reddy stated.

She warned Mr Muddukrishnamanaidu on this account and advised his party president N Chandrababu Naidu leader to stop his utterances.

The Ministers one after the other repeatedly condemned Mr Muddukrishnamanaidu’s statement and demanded an unconditional apology from him. 

The ministers particularly took exception to his attributing the MFIs' exploitation to Rahul Gandhi and Sonia Gandhi. Mr Muddukrishnamanaidu had no right to speak against Prime Minister Manmohan Singh or Gandhi family, they said.