MFI Regulation Bill Approved

The state cabinet on Wednesday approved the A P Micro Finance Institutions (Regulation of Money Lending) Bill. The bill will replace the A P Micro Finance Institutions (Regulation of Money Lending) Ordinance which was issued on October 15.

The bill makes registration for MFIs mandatory, and non-registration can result in a 3-year jail term or Rs. 1 lakh in fine.

MFIs must take prior approval from the registration authority to give loans to SHG members that are already availed themselves of bank finance, to prevent multiple loans being given to one member without verifying their repayment capacity.

Attempts to recover the loan through coercion will attract a 3-year jail term or Rs. 1 lakh in fine or both, among other punishments. The bill will be introduced in the state Assembly, which will be reconvened this month.

The cabinet also approved the bill to amend the GHMC Act, 1955. The proposed amendment will enable a quota for BCs in the elective posts in GHMC, applying the creamy layer principle.

To achieve goals concerning the long coastline, the state has proposed to constitute an A P Maritime Board. The cabinet decided to introduce the bill in the next session of the Assembly.

Courtesy: INN