Demand to publicize the government’s efforts to solve the problems of microfinance sector

KATHMANDU: Recently, there was a debate in parliament about the importance of informing the public about the steps taken by the government to address the problems seen in microfinance financial institutions.

In today’s meeting, MP Rekha Yadav stated that the Ministry of Finance should address the problems in the microfinance sector. “The problems of microfinance are now being exposed. Why is the Ministry of Finance remaining silent on this? What steps have been taken to address the issue? We also require a response from the ministry ” she stated.

MP Yadav also stated that, despite the fact that the issue of microfinance was raised at the previous Parliament meeting, no solution could be found. This issue has been raised in parliament numerous times in a short period of time, but no response has been received. He believes the Ministry of Finance should make public its plans for managing microfinance incidents.

Borrowers have been complaining for some time that microfinance institutions are exaggerating loan recovery. Borrowers are protesting against microfinance companies for a variety of reasons, including high interest rates, high service fees, a difficult installment payment process, and employee misbehavior.

MP Yadav said that even though the country has gone to a federal government system, the feeling of federalism has not been realized. He said, ‘The state is not getting the right. They are not being exploited by the center somewhere.’ MP Yadav said that the association has also given the state the right to recruit police and civil servants, but it has not been able to work even in that.