A bill to regulate microfinance institutions in Andhra Pradesh was tabled in the state Assembly on Saturday.
The bill replaces the ordinance, signed by Governor ESL Narasimhan in October, which was promulgated to bring a halt to the arm-twisting methods employed by MFIs to collect installments on loans.
The bill was tabled by the Legislative Affairs Minister Duddilla Sridhar Babu, even as the Opposition was protesting against the government for not withdrawing the cases against the students who took part in the agitations over the bifurcation of the state.
The copies of the bill, which will come for a debate on Monday, were circulated on Friday. Earlier, the MFIs sought certain changes in the bill fearing that it would leave them in the lurch.
The MFIs' grouse was that their collection fell down from 95% to 20%. The MFI bodies suggested that the government should wait for the report of Y H Malegam Commission, set up by the Reserve Bank of India on October 20th before passing the legislation.
The legislation could stall repayment of Rs. 7,400 crore in the state.
Sridhar Babu also said that over 12 lakh women could not take loans after the promulgation of the ordinance.
Courtesy: INN
filed in:E S L Narasimhan, Microfinance, Sridhar Babu