Assam government to frame detailed guidelines for MFI operations: Himanta Biswa Sarma

GUWAHATI: Assam finance minister Himanta Biswa Sarma on Thursday said that government will frame detailed guidelines for the operations of the Micro-Finance Institutions (MFIs) in the state. State government proposed to constitute a Micro-entrepreneurs Support Fund with a corpus of Rs. 500 Crore towards comprehensively addressing the current issues facing the Micro-Finance sector of the State

Presenting the Assam budget for 2020-21, Sarma said: “Micro-Finance Institutions have played a significant role in promoting financial inclusion in Assam over the past few years - especially in terms of providing facilities for availing credit, deposit and insurance products, in addition to penetration of branches for extending banking/financial services in remote areas of the State. However, some undesirable events have recently come to light in this sector which indicate structural and operational problems at the grassroots level.”

He added, “In this regard, our Government proposes to frame detailed guidelines for the operations of the MFIs in the state, to safeguard the interest of our people immediately after the Budget Session. We also propose to constitute a Micro-entrepreneurs Support Fund with a corpus of Rs. 500 Crore towards comprehensively addressing the current issues facing the Micro-Finance sector of the State.”


A section of microfinance borrowers and local groups in Assam is demanding banning of microfinance following a spate of non-payment of loans and stress in rural household. Different organizations in the upper part of the northeastern state have joined the chorus demanding inquiry into the operation of microfinance lenders as several micro borrowers are said to be exposed to high debt. Reports of unrest have come from districts like Dibrugarh, Golaghat, Jorhat, Sibsagar and Tinsukia.