Govt urged to scan private micro finance firms
Source: Chronicle News Service
Imphal, February 08 2022:
Expressing apprehension over the increasing number of private micro finance institutions in the state, Lawyers for Human Rights Manipur (LHRM) has urged authorities concerned to look into the activities of micro finance institutes that are not recognised by the Reserve Bank of India.
Speaking to media persons at Manipur Press Club here on Tuesday, Lawyers for Human Rights Executive director Meisnam Korouhanba noted that private micro finance institutes have been providing loans at low interest rate and other benefits to 30,000 people thereby helping the economy of Manipur.
However, increasing number of micro finance institutions not recognised by RBI or even though recognised but did not follow the norms of RBI amidst Covid-19 pandemic has created more problems to the companies recognised by RBI.
Those unrecognised micro finance companies had duped the people and fled from the state, he said.
Pointing out that a designated court in the state has already taken up case against such companies and organisations under Unregulated Scheme Act, 2019, Korouhanba expressed concern that fate of many depositors are unknown as government, which is the competent authority, remains a silent spectator.
He continued that several cases have been taken up in this regard as complaints were submitted to Lawyers for Human Rights Manipur.
The state will face problems in the economy if the government ignore the matter, Korouhanba cautioned.