Orissa panel to study micro-finance complaints

BHUBANESWAR - Orissa has decided to form a panel within the next one week to examine complaints it has received against micro-finance institutions in the state, an official said Friday.

“The panel will be formed within the next one week and submit a report to the state government within a month’s time,” a senior official of the state finance department told IANS.

The state government has received complaints from women’s organizations that some of the micro-finance agencies are charging 40-60 percent interest on their lending although they are availing credit from banks at 11 to 13 percent rate of interest, he said.

The Reserve Bank of India has formed a committee to study issues and concerns in the micro-finance sector. The committee will submit its report in three months.

“We will send our proposal to the Reserve Bank of India after receiving the report from our committee,” the official said.