Civil body draws attention of authorities on collection of loan interests by microfinance groups
Kakching Khunai Chaokhat Hanba Lup (KKCHL) stated that microfinance groups are collecting interests as per their wishes.
Concerning the adverse economic impacts caused by the second wave of COVID-19 pandemic in Manipur, Kakching Khunai Chaokhat Hanba Lup (KKCHL) raised serious concerns on the collection of loan interests by privately owned microfinance groups in the state and drew attention of the authority concerned on the matter.
The majority of the population residing in Kakching areas are daily wage earners, and the declaration of a containment zone at the said areas has given severe economic setbacks to them, stated a release issued by KKCHL on Tuesday.
Meanwhile, many microfinance institutions are still collecting interests from the people for the loans they had taken from them, it stated. This has put extra burden to the poor people who are busy running from pillar to post to make ends meet, it added.
This condition may force them to break the containment rules, it further stated, appealing to the district administration to draw its attention in prevention of interest collection by microfinance groups in the backdrop of the prevailing scenario.
The release mentioned that microfinance groups are collecting interests as per their wishes. It is high time for authorities concerned to regulate Money Laundering Act, 1949 and find out the institutions which are yet to register, it stated.
It also urged to put a halt on all activities related to chit funds and lotteries until the pandemic subsides to some extent.