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)
Trending On Reuters
Thousands of Nepalese huddled under tents and sought scarce food and medical supplies on Monday, two days after a massive quake killed more than 3,200 people and overwhelmed authorities. Full Article | Slideshow
- Quake warnings of minutes, not hours, are possible, but pricey
- UNICEF says nearly a million children "severely affected" in Nepal
- Factbox - Foreigners in Nepal at time of deadly earthquake
- "Demons on the mountain"; survivors recall avalanche terror
- In Kathmandu Valley, quake-hit Nepalis fend for themselves