Maharashtra Home Minister R R Patil today assured that the government would take action against the women self-help groups which levy exorbitant interest rates on their borrowers.
Intervening during the re-introduction of a bill to regulate money-lending in the state, Patil said he had received complaints that some self-help groups also charge exorbitant interest rates.
The issue was raised by Speaker Dilip Walse-Patil, who said that the rates of some self-help groups are so high that they would shame even the money lenders.
The Maharashtra Money Lending (Regulation) Bill 2010 was passed in 2010 by both houses of the state legislature.
However, certain banking institutes were later excluded from the Act's operation, as per the suggestion of the Union Home Ministry, made on the recommendations of the Union Finance Ministry.
Therefore, the bill has been re-introduced after incorporating the suggestions. It would not apply to non-banking financial companies regulated by the Reserve Bank, co-operative societies/ banks regulated by the Banking Regulation Act, and the banks regulated under the Regional Rural Banks Act.
All these institutions are governed by the Central laws.
