Govt tables MFI Bill to replace Ordinance

A Bill to regulate the Microfinance Institutions in Andhra Pradesh was tabled in the State Assembly on Saturday.

The Bill replaces the Ordinance promulgated by the state government to bring a halt on the arm twisting methods employed by the MFIs to collect instalments on loans and signed by Governor ESL Narasimhan in October.

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, with no Amendments were circulated on Friday. Earlier the MFIs sought certain changes in the Bill fearing that it would leave them in the lurch.

The MFI's grouse was that their collection fell down from 95 to 20 per cent. The MFI body suggested that the government wait for the report of YH Malegam Commission, set up by the Reserve Bank of India on October 20, before passing the Legislation.

The Legislation could stall repayment of Rs 7,400 crore in the state. 

Mr Sridhar Babu also said that, after promulgation of the Ordinance over 12 lakh women could not take loans.