Mangaluru, August 4: Dakshina Kannada Deputy Commissioner A B Ibrahim has directed the deputy registrar of cooperative societies in the district to cancel the registration of finance companies that operate without office within a week. He spoke at a meeting held with the chiefs of commercial banks, rural banks and other non-banking financial institutions at the DC office auditorium on Monday, August 3rd.
The DC said as per the banking rules, interest exceeding 16 % cannot be levied on any loan. If the public’s know about any finance companies or persons charging more than 16 % interest, they can complain about this at the nearest police station.
District superintendent of police Dr S D Sharanappa said in the meeting that the police department has already begun the process of instilling courage in farmers to fight the financiers who charge exorbitant interest rates on loans. Meetings in urban and rural levels will be held to educate the farmers in this regard. Strict action will be taken against the financiers who charge more and unreasonable interest.
In the District 320 finance companies are operating and unregistered finance companies are being identified and will be brought to the attention of the police department, informed B K Salim the deputy registrar of co operative societies.
There are 1.2 lakhs farmers in the district out of which 90,000 farmers avail loans only through co-operative societies. Every farmer who has the proper set of records has been given loan. In case farmer fail to get the loan even after submitting the relevant documents, suitable actions will be taken if the farmers give complaint, informed B K Salim.
During the meet, the DC gathered information about the finance business from the representatives from Muthoot Pincorp, Muthoot Finance, Manapuram and other finance companies. The company representatives explained that all these finance firms are working as per the directions of the Reserve Bank and that mainly the personal loans are given over the gold pledged, and agricultural loans are not given.
DC also discussed on the price fluctuation of the vegetables, grocery items and other food stuffs with the APMC officials. He also asked them to keep track about the market prices of these products.
Shortage of staffs:
Out of the 57 posts sanctioned for the Dakshina Kannada district co-operative societies including the posts of the key officers in taluk level, currently only 13 posts are filled. In the district, total of 830 co-operative societies are registered. At present 790 are functioning. The officers and staffs working at present are taking the in-charge of all these societies, informed B K Salim.
