Cabinet approves microfinance regulation bill

NEW DELHI Thu May 10, 2012 8:05pm IST

Tairabi Pathan, 40, who took a loan of rupees 10,000 from a micro finance company to start her own business, arranges her goods for sale at the side of a road in a slum area in Mumbai October 26, 2010. REUTERS/Danish Siddiqui/Files

Tairabi Pathan, 40, who took a loan of rupees 10,000 from a micro finance company to start her own business, arranges her goods for sale at the side of a road in a slum area in Mumbai October 26, 2010.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - The cabinet has approved a bill aimed to bring microlenders under the Reserve Bank of India's oversight, a minister, who declined to be named as the parliament is in session, said on Thursday.

The Microfinance Institutions (Development and Regulation) Bill needs parliament's approval to become a law.

Microlenders have been accused of aggressive lending and recovery practices and high interest rates, which attracted calls for regulation.

India's once-thriving microfinance sector was devastated by a crackdown more than a year ago by the government of Andhra Pradesh, which was the industry hub and largest market.

The state rules resulted in a drop off in loan collections and a drying up of funding for microlenders.

(Reporting by Nigam Prusty; editing by Malini Menon)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Diplomacy

REUTERS SHOWCASE

Maruti Results

Maruti Results

Maruti Suzuki says profits helped by sentiment, not growth.  Full Article 

Tracking the Monsoon

Tracking the Monsoon

Monsoon turns patchy after revival.  Full Article 

ICICI Profit Up

ICICI Profit Up

ICICI Bank Q1 net profit up 17 percent, beats estimates.  Full Article 

Pharma Sector

Pharma Sector

FDA raises concern over drug production process at Cadila  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Fuel Prices

Fuel Prices

IOC to cut petrol prices by 1.5 pct from Friday  Read 

Economic Pulse

Economic Pulse

India's infrastructure output growth hits 9-month high in June  Full Article | Related Story 

Joint Bid

Joint Bid

ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage