New Delhi, May 15 (UNI) As thousands of women took out a protest march to Parliament, the CPI (M) today said it will not support the Centre's proposed Micro Finance Sector (Development and Regulation) Bill 2007 which they allege is aimed at ''exploiting the rural borrowers''.
CPI (M) Polit Bureau member and social activist Brinda Karat said, ''While the government provides loans to the industrial bigwigs at concessional rates, it denies a reduction in the rate of interest in case of poor borrowers.'' Voicing protest against the proposed Bill, thousands of women marched to Parliament to present their memorandum to Finance Minister P Chidambaram during a National Convention organised by the All India Democratic Women's Association and Samata, Bharat Gyan Vigyan Samiti.
The Bill, which is pending before the Parliamentary Standing Committee on Finance, leaves the non-banking financial and Section 25 companies out of the purview of its regulatory framework and thus gives the Micro Financial Organisations (MFOs) a license to make profit out of the thrift of the poor women, she said.
''We believe there is a need for regulating the micro finance sector. This kind of Bill will further aggravate the condition of the rural women who find it difficult to get access to loans,'' Ms Karat added.
At present, the savings of Self Help Groups (SHGs) are kept in a bank account and the members have control over the same.
The women can earn interest income by lending to their own members which is shared. This control will go to the NGO if the bill is passed.
The Bill will also give provision to the rural banks to reduce rural credit as the NGOs would be given the authority to thrift for their credit needs.
Moreover, the Bill does not prohibit FDI in this sector which can lead to many funding agencies getting into thrift collection through their sponsored NGOs, the CPI (M) leader said.
UNI
CPI (M) Polit Bureau member and social activist Brinda Karat said, ''While the government provides loans to the industrial bigwigs at concessional rates, it denies a reduction in the rate of interest in case of poor borrowers.'' Voicing protest against the proposed Bill, thousands of women marched to Parliament to present their memorandum to Finance Minister P Chidambaram during a National Convention organised by the All India Democratic Women's Association and Samata, Bharat Gyan Vigyan Samiti.
The Bill, which is pending before the Parliamentary Standing Committee on Finance, leaves the non-banking financial and Section 25 companies out of the purview of its regulatory framework and thus gives the Micro Financial Organisations (MFOs) a license to make profit out of the thrift of the poor women, she said.
''We believe there is a need for regulating the micro finance sector. This kind of Bill will further aggravate the condition of the rural women who find it difficult to get access to loans,'' Ms Karat added.
At present, the savings of Self Help Groups (SHGs) are kept in a bank account and the members have control over the same.
The women can earn interest income by lending to their own members which is shared. This control will go to the NGO if the bill is passed.
The Bill will also give provision to the rural banks to reduce rural credit as the NGOs would be given the authority to thrift for their credit needs.
Moreover, the Bill does not prohibit FDI in this sector which can lead to many funding agencies getting into thrift collection through their sponsored NGOs, the CPI (M) leader said.
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