AP Assembly passes Bill to regulate MFIs
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Last Updated: Tuesday, December 14, 2010, 23:51
  
Hyderabad: The Andhra Pradesh Assembly tonight passed a Bill that is aimed at regulating the working of microfinance institutions (MFIs) in the state.

Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Bill, 2010, would replace the ordinance issued by the Government on October 15 in the wake of reports of coercive recovery methods employed by the MFIs.

The Bill, which also seeks to protect women self-help groups from exploitation by MFIs, contains all the provisions of the ordinance which was issued following a spate of suicides by many small borrowers.

The Government rejected the Opposition's demand to refer the Bill to a joint select committee of the Legislature to study the provisions in detail and make the law foolproof. It also rejected the demand for putting a cap on the rate of interest charged by the MFIs.

Members of the main Opposition TDP were not present in the Assembly as they were suspended in the evening for disrupting proceedings of the House.

PTI


First Published: Tuesday, December 14, 2010, 23:51


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