Interest cap on MFIs under study: Minister

As the interest cap for MFIs is outside the purview of the state government, the Central government is studying the issue.

Briefing media persons on the High Court interim orders on the micro finance institutions subject, Rural Development Minister Vatti Vasanth Kumar said again that interest should not exceed principal and the MFIs' registration was mandatory.

At a joint press conference here today, Mr Vasanth Kumar and Agriculture Minister Raghuveera Reddy made light of the alleged comments by opposition leader and Telugu Desam Party president N Chandrababu Naidu and ridiculed the latter's remarks that what he did for the poor during his reign was negligible when compared to what was being done during the current Congress rule.

Raghuveera Reddy explained that under the revolving fund the government released Rs 181 crore so far and said that under Paavala Vaddi Rs 835 crore as incentive(interest) was released.  

Listing out various schemes and the funds released so far during the Congress rule since 2004 for the benefit of the poor, Mr Raghuveera Reddy made a broadside at Mr Naidu, who he said, was on Telangana tour in Medak district where his own party leaders distributed pamphlets without the former chief minister’s picture. This was confirmed by his lieutenant Nagam Janardhan Reddy, the Ministers stated.

Further, Mr Raghuveera Reddy wondered how Mr Naidu raised objection over the portrayal of his mentor NTR in the controversial film 'Raktha Charithra', which was released in Anantapur, contrasted to how he had humiliated NTR, who was denied even a chance to speak on the Floor of the House.

The Ministers also stated that Mr Naidu's remarks against the duly elected people's government were irresponsible and that he made it a habit to comment for realising political gains.