Speaking at the inauguration of Vijaya Microfinance Financial Institution in Rajahar of Nawalparasi, Khatiwada said the growing tendency of lending money to people who have already taken loan from other financial institutions might expose the micro finance sector to risk. “MFIs involved in such activities should be punished. These practices should be immediately stopped,” said Khatiwada.[break]
Citing statistics, he said more than 1.5 million families across the country are benefiting from micro finance services. “Statistics show entire poor families have been covered by MFIs. But this is not happening in practice,” he said.
According to Khatiwada, only 1.4 million families are below the poverty line.
“The MFIs should invest in the productive sectors as they have to lend money without any collateral,” the central bank governor said. “The micro-finance sector is supposed to help poor people who don´t have any collateral to secure loans from financial institutions.”
Related story
Money laundering probe deepens as DoMLI targets promoters of ei...
