Contrary to the expectations of the microfinance institutions network—MFIN, the Andhra Pradesh government is bringing out the MFI Bill in its original form. The MFIN is now considering further options to save its business in AP, reports CNBC-TV18’s Appaji Reddem quoting sources.
The AP government is keen on bringing out the MFI Bill. But MFIN says the bill will be a big blow for the industry as its concerns have not been taken into consideration.
The microfinance institutions had voiced their concerns with regards to the bill. The body demanded weekly collections, whereas the government made monthly collection mandatory. Secondly, MFIN wanted any public place to be collection centre, while the government wanted Panchayat office to be the sole collection centre. Thirdly, MFIN wanted single and centralised registration, where the government wanted all branches in districts to be registered.
However, the government is of the view that the microfinance institutions are slowly falling in line and are on compliance mode.
It is also known that the Bill will not be the final word as the writ petitions filed by MFIN are yet to be heard in the AP High Court.
Meanwhile, MFIN is also thinking of exploring the possible political solution and may also approach the Supreme Court if relief not found at the High Court.
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