India News | HC Notice to RBI on Plea Alleging Loan Recovery by Micro Financing Institutions

Chennai, Jul 15 (PTI) The Madras High Court on Wednesday issued notice to the Reserve Bank of India (RBI) and the Tamil Nadu government on a petition seeking action against micro- finance institutions that allegedly insisting the members of self-help groups (SHG) to repay loan during COVID-19 moratorium period.

A bench comprising Justice MM Sundresh and Justice R Hemalatha directed the RBI and the government to file their replies within four weeks.

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Petitioner All India Democratic Womens Association (AIDWA) represented by S Suganthi also wanted the court to direct the state to set up a helpline and appoint a special officer in each district to receive complaints and to take action against such micro-financing institutions.

It also wanted a direction to the RBI to extend the moratorium by another six months.

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The RBI had initially announced three months moratorium on loan repayments in view of the COVID-19 national lockdown and later extended it by another three months till August this year.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)