The Andhra Pradesh government has appealed to the bankers to extend revolving cash credit to the poor women in a bid to prevent them from seeking loans from microfinance institutions (MFIs). MFIs have been in the news over the recent months allegedly for driving a huge number of their loan-seekers to suicides. Strong arm tactics have led to violence and in an incident yesterday,a girl committed suicide after being beaten by four loan recovery agents who were hunting for her mother. The bankers have responded positively to the request from the state government and details of the proposal are likely to be available during the week,state Rural Development Minister V Vasant Kumar told reporters here today. He said a proposal to bring under NABARD the MFIs,whose coercive methods have resulted in large number of suicides in the state,is being examined at the Central level. In the wake of massive public outcry over the large number of suicides of borrowers from MFIs,the state government has issued an ordinance earlier this month to rein in the microfinance institutions. Kumar and Agriculture Minister N Raghuveera Reddy dismissed the allegation of TDP leaders that the MFIs were encouraged by Congress leader Rahul Gandhi. "The TDP leaders released a photo of some MFI owners with the Gandhi family members. If that makes them liable,then Chandrababu Naidu's proximity with some economic offenders is well-known," Kumar said. "We have given details of how much loans our government gave during the last six years and the loans given by the TDP when it was in power. I am ready for a debate on the issue with Chandrababu Naidu," he said. The two ministers were responding to the allegations of TDP leader N Nageswara Rao that Rahul Gandhi encouraged MFIs and that he was ready for a debate on the matter.
