Cabinet nod for MFI Bill

The state Cabinet on Wednesday approved the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Bill, 2010, brought out for regulating the activities of microfinance institutions, particularly their usurious interest rates.

The Bill will be introduced in the Assembly during the winter session scheduled to be held this month.

The ordinance said operating an MFI without registering with the district rural development agency was an offence punishable with imprisonment of up to three years or fine up to Rs 1 lakh or both.