MFIs get 2 more weeks to register

The AP High Court on Friday granted two weeks' time to microfinance institutions in the state to get themselves registered with the district rural development agency (DRDA).

A two-member division bench, while dealing with a petition filed by SKS Microfinance, modified its earlier order, which allowed MFIs a week for registration and two days for submission of transaction details

SKS filed a petition today seeking extension of time by six weeks stating that its field staff met the branch offices only once a week and therefore compilation of details based on the data collected would be possible only once in two weeks.

SKS counsel told the court that DRDA officials were insisting on MFIs furnishing ration card details of borrowers. He said SKS had 2.2 million borrowers and it was difficult to collect ration card copies of them.

The advocate general said the DRDA had given MFIs five days' time to furnish the details. Also, the ration cards were being confiscated by MFIs to put pressure on the borrowers for repayment.

The bench advised the MFIs to approach the state later if they had difficulties with the registration process.

Meanwhile, there have been 120 registrations till October 28 since the ordinance came into effect. Among those that got registered include L&T in 14 districts, Asmita in 14, Aware in 5, Basix in 12, Impact in 5, Share in 17, SKS in 7, Spandana in 14 and Trident in 10 districts.

The number is likely to increase over the next week. There are 23 districts in AP.