(correcting slug)

New Delhi, May 15 (UNI) Stating that the Micro Finance Sector (Development and Regulation) Bill 2007 was aimed at weakening the autonomy and rights of the Self Help Groups (SHGs), thousands of women today marched to the Parliament to present their memorandum to the Finance Minister.

Terming the current draft as an instrument to exploit the SHGs, CPI(M) Politbureau member Brinda Karat said, ''We believe there is a need for regulating the micro finance sector. This kind of bill will further aggravate the condition of the rural women who find it difficult to get access to loans.'' The proposed bill 2007, which is pending before the Parliamentary Standing Committee on Finance leaves the non-banking financial and Section 25 companies out of the purview of its regulatory framework and thus giving the Micro Financial Organisation (MFO) a license to make profit out of the thrift of the poor women.

The members of the group complained that the bill ignores the empowerment aspect of micro finance.

At present, the savings of the SHG members are kept in a bank account and the women have control over the same. The women can earn interest income by lending to their own members which is shared.

This control will go to the NGO if the bill is passed.

The bill will also give provision to the rural banks to reduce rural credits as the NGO's would be given the authority to thrift for their credit needs.

Moreover, the bill does not prohibit FDI in this sector which can lead to many funding agencies getting into thrift collection through their sponsored NGO's.

The National Convention to protest against the bill, which it opined was silent on the amount of interest to be charged by the lending organisation, was organised by the All India Democratic Women's Association and Samata Bharat Gyan Vigyan Samiti.

UNI