CSO blames financial firm for over-charging
Source: The Sangai Express

Imphal, December 11 2014: The Association of Human Right Activities (AHRAM) has accused the non-banking financial institute North East Region Finance Service Limited for over-charging loanees with loan interests higher the prescribed rates.

Speaking to media persons at Manipur Press Club here today, AHRAM general secretary Haoneipao said that the North East Regional Finance Service Limited has been giving loans to people of the North East region since it was established on October 13, 2008 with due approval of the Reserve Bank of India (RBI), Guwahati Region.

Interest rates vary according to loan amounts.

It is either 21 per cent, 24 per cent or 26 per cent per annum but the interest rates as applied in other States is either 12 per cent, 14.5 per cent or 15 per cent per annum.

Even though the interest rates are much higher, people have been taking loans from the financial institute because of compelling requirements.

Loan interests collected by the financial institute from loanees of the North East region is either 41 per cent, 47 per cent or 51 per cent per annum.

Even though the matter has been apprised to the top officials of the bank (RBI Guwahati region) repeatedly, no corrective measure has been initiated so far, Haoneipao said.

Subsequently, a memorandum has been submitted to the Prime Minister of India.

Acting on the memorandum, RK Sinha, Under Secretary, Department of Economic Affairs, Financial Market Division, Ministry of Finance Government of India wrote to the RBI Executive Director to take up necessary actions but the bank has been still refusing to act.

In case the unscrupulous practices of the financial institute and the bank are not rectified at the earliest, further course of action would be initiated at all the branches of the bank located across the North East region, Haoneipao added.

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