"Stop the Loot": AIDWA Sieges RBI Bhubaneswar
Senior CPI(M) leader Brinda Karat leads hundreds of women in a massive rally against exploitative Microfinance Institutions (MFIs), demanding strict RBI intervention to end the "debt trap" consuming poor families.
The "Debt Trap" Reality
Why are women protesting? The core issue is the stark difference between the promise of financial inclusion and the reality of predatory lending. Explore the data below to understand the burden on borrowers.
Interest Burden Comparison
The AIDWA Argument
While banks offer lower rates (~7-9%) to Self-Help Groups (SHGs), private MFIs charge significantly higher (24%+), often with hidden costs, pushing vulnerable women into a cycle of borrowing new loans to pay off old ones.
10-Point Charter to the RBI
The delegation submitted a specific list of demands to the Regional Director of RBI, Bhubaneswar. Interact with the cards below to see the core pillars of their petition.
Strict Interest Caps
Implementation of a hard ceiling on interest rates charged by private microfinance lenders to prevent usury.
Humane Recovery
An immediate end to coercive, humiliating loan recovery methods that violate human dignity and cause mental distress.
Grievance Redressal
Establishment of dedicated district and block-level cells to specifically handle complaints of MFI harassment.
Public Bank SHGs
Zero-interest or low-interest loans directly from public sector banks to Self-Help Groups, reducing reliance on private MFIs.
Additional Key Points
- ✔ Compliance Audits: Regular RBI monitoring to ensure MFIs follow existing guidelines.
- ✔ Transparency: Mandatory disclosure of all terms in local languages.
- ✔ No Criminalization: Poor women should not be treated as criminals for small defaults.
- ✔ Bank Linkage: Strengthening the SHG-Bank linkage program.
Voices from the Ground
"The original promise of microfinance was empowerment, but today it has become a tool for institutional loot... deregulated MFIs are trapping poor women, especially from Dalit, Adivasi, and minority communities."
Comrade Brinda Karat
Politburo Member, CPI(M) & Leader, AIDWA
The Wider Context: A "Crisis of Credit"
The protest in Bhubaneswar is not an isolated event. It reflects a national trend of rising Non-Performing Assets (NPAs) and growing friction between lenders and borrowers.
While MFIs claim to provide essential financial inclusion to the unbanked, groups like AIDWA argue that profit-driven models have undermined social goals. The result is a system where "credit" becomes "debt," and empowerment turns into exploitation.
Key Protest Outcome
A detailed memorandum was submitted to the Regional Director of RBI Bhubaneswar, officially logging the dissent against current MFI practices.
