How microfinance has become a central issue in Assam ahead of polls

According to experts, haphazard regulation of the MFI sector may be tantamount to throwing the baby out with the bathwater

All over Assam, small groups of women have banded together in organisations that seem to have mushroomed overnight. They have different names but a common target: Microfinance companies. 

‘Death by debt’ was spoken of in hushed whispers in the state, but became a political issue important enough for the state government to pass (in flagrant violation of Reserve Bank of India norms) the Assam Microfinance Institutions (Regulation of Money Lending) Bill, 2020’ on December 30 last year with the stated intention of “protecting economically vulnerable people from microfinance institutions (MFI)” and money lenders.

This Bill sought to restrict the maximum limit of