APPRECIATES A.P. GOVERNMENT FOR SUCCESSFUL IMPLEMENTATION OF
SUPPORT TO A.P. GOVT. IN TACKLING THE MENACE OF MFIs
Apart from writing a
letter to the RBI Governor Mr. Duvvuri Subba Rao, the Chief Minister
Dr.K.Rosaiah in the early hours today, spoke to the RBI Governor over phone and
emphasised the need for early initiatives of RBI on Micro Finance
Institutions. He thanked the RBI Governor for constituting a sub-committee to
look into the functioning of MFIs.
The RBI Governor informed
the Chief Minister that the members of the sub- committee will call on the
Chief Minister shortly. The RBI Governor has also assured the Chief Minister
that the RBI will fully support the A.P. Government in arresting the mall
practices of MFIs and help the poorer sections. The RBI Governor has also told
the Chief Minister that Andhra Pradesh Government has become a role model not
only in implementing major welfare and development works, but also in strictly
maintaining the financial discipline to enhance the overall economic
development of the State.
The Chief Minister also
wrote a letter to the Union Finance Minister, Mr.Pranab Mukherjee seeking
guidance in the matter and for clarification regarding the appropriate agency
for regulation of interest rates being charged by MFIs.
(A copy of each of the
letter of the Chief Minister addressed to the RBI Chief and the Union Finance
Minister is also herewith attached).