Moving on to the political issues in and around the state..Seeking to rein in microfinance institutions whose coercive functioning led to alleged suicides in rural areas , the state government on Thursday, approved a special ordinance for purpose and sent it for governor's assent.

Alarmed at spate of suicides by borrowers following harassment by such financial firms, Chief Minister K. Rosaiah had convened a special Cabinet meeting to finalise the draft of an ordinance. The meeting was decided to set up fast track courts for speedy disposal of cases relating to financial firms.

In the meantime, Talking to reporters after cabinet meeting, state minister for rural development Vatti Vasanth Kumar has declined to divulge the contents of ordinance.

Anyhow, It would be made compulsory for all MFIs to register themselves. Other than this, the ordinance has not touched the issue of rate of interest.

Published Date, Friday, Oct 15, 02:30PM IST

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