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‘State concerned over suicides by borrowers'
Crisis demands immediate attention: Rosaiah
HYDERABAD: In a firm direction to the district Collectors and Superintendents of Police, Chief Minister K. Rosaiah has asked them to curb atrocities committed by micro finance institutions (MFIs) with a heavy hand.
Addressing a video conference with Collectors and SPs here on Thursday, Mr. Rosaiah said the government was greatly concerned over the suicides by borrowers following the use of strong arm tactics by MFIs. Such brutal behaviour could not be allowed in a civilised society. It was a crisis that demanded immediate attention, he added.
The poor were approaching MFIs out of desperation because of non-availability of bank credit. Therefore the Collectors should monitor and ensure that the bankers meet the target in extending loans to SHG groups in their districts. He asked them to convene a meeting of bankers immediately at the district and block level to ensure credit flow to the SHGs through bank linkages. At present only one-third of SHGs got bank loans, he said.
While the government was promulgating an ordinance to rein in the MFIs from exploiting the poor in rural and semi-urban areas, the Collectors must implement ‘Sircilla package' by asking banks to provide debt swapping facility to poor caught in the MFI web, the Chief Minister said.
The Sircilla package was extended by late Y. S. Rajasekhara Reddy when the poor committed suicide unable to emerge from debts, he said.
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