SIT will be formed to probe violations by MFIs: Kesarkar

Maharashtra government today announced that a special investigation team (SIT) will be formed to investigate the alleged violations of RBI guidelines and exploitation of women by micro-finance institutions (MFIs) in the state.
After a comprehensive debate in the state Legislative Assembly on the issue and demand made by legislators, Minister of State for Finance, Deepak Kesarkar, agreed for an SIT probe into the charges of violations and exploitation by MFIs.
Raising the issue of MFIs in Vidarbha, BJP members Dr Milind Mane, Charan Waghmare and Atul Bhatkhalkar said that in rural areas, some of the companies were exploiting the micro groups of men and women, who are offered loans on a higher rate of interest and treated in a harsh manner at the time of recovery of amount.

Kesarkar said that about 310 women have lodged 12 written complaints in Amravati city. "Offences against an MFI has been registered with Rajapeth Police Station in Amravati," he said.
According to the minister, 15 women self help groups (SHGs) have lodged complaints with Ajni Police Station in Nagpur stating that their members were harassed by the MFIs.
Kondhali, Kalmeshwar, Saoner, Ramtek police stations in Nagpur rural areas have received complaints from respective women's groups regarding harassment by these institutions.
"The SIT will probe the alleged violations of RBI guidelines by the MFIs," Kesarkar told the House while winding up the discussion on the issue.