In a move to give additional relief to the self-help groups, the government has issued a stipulation to microfinance institutions to collect loan recovery instalments only once a month hereafter and not on a weekly basis as is the practice now.

Announcing this at media conference here on Saturday, Rural Development Minister Vatti Vasanth Kumar said district Collectors were asked to see that the MFIs stopped their weekly collections forthwith and that those intimidating the SHG members for such collections were punished under the recently promulgated ordinance.

He said the MFIs have also been asked to provide details of any collection made by them from SHGs to the registration authority within 48 hours of receiving the amount.


Published Date : Sunday, Oct 24, 06:11PM IST

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