A Parliamentary panel, headed by senior BJP leader and former finance minister Yashwant Sinha has rejected the bill on micro finance institutions, which sought to empower the Reserve Bank as the regulator, by giving it the authority to fix interest rates ceiling on loans to be provided by MFIs.
The committee, which was not in favour of the draft legislation to regulate MFIs, will soon submit its report on the bill to the Parliament. The bill was introduced in the Lok Sabha in May, 2012 and was later referred to the committee for perusal.
The bill, which was drafted against the backdrop of problems faced by borrowers of MFIs in Andhra Pradesh and other states, provides for compulsory registration of MFIs with the RBI and is most likely to be lapse with dissolution of House.
The committee, which was not in favour of the draft legislation to regulate MFIs, will soon submit its report on the bill to the Parliament. The bill was introduced in the Lok Sabha in May, 2012 and was later referred to the committee for perusal.
The bill, which was drafted against the backdrop of problems faced by borrowers of MFIs in Andhra Pradesh and other states, provides for compulsory registration of MFIs with the RBI and is most likely to be lapse with dissolution of House.
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