MFIs get 2 more weeks to register in AP

The High Court today granted two weeks to microfinance institutions in the state to get themselves registered with their respective District Rural Development Agency (DRDA).

A two-member bench, while dealing with a petition from SKS Microfinance on the recent government ordinance in this regard, modified its earlier order, which allowed MFIs a week for registration and two days for giving their transaction details

SKS filed a petition today for six weeks extra time, stating 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 on this scale. The advocate general said the DRDA had given MFIs five days 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. There had been 120 registrations till yesterday since the ordinance took effect. Among those that got registered were L&T in 14 districts, Asmita in 14, Aware in five, Basix in 12, Impact in five, Share in 17, SKS in seven, Spandana in 14 and Trident in 10 districts. The number is likely to increase over the next week. There are 23 districts in AP.