A day after the state government issued an ordinance to rein in micro-finance institutions, the Chief Minister, Mr K. Rosaiah, on Saturday wrote to the Union finance minister, Mr Pranab Mukherjee, and the Reserve Bank of India Governor, Mr Duvvuri Subba Rao, seeking an end to the ambiguity on regulating interest rates charged by the MFIs.

In his letter, Mr Rosaiah pointed out contradictory statements made by the RBI and the finance department over state governments regulating the MFIs. He urged Mr Mukherjee and Mr Rao to issue a clarification on whether the state government had the power to regulate the interest rates charged by MFIs or not. Mr Rao, who responded to the letter, spoke to the CM over phone and clarified that the RBI was in the process of drafting guidelines on regulating the MFIs.

Published Date : Sunday, Oct 17, 02:00PM IST

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