Assam CM Sarbananda Sonowal (Photo | PTI) 
India

Assam Assembly passes Bill to protect vulnerable borrowers

The Bill proposed to bar the MFIs from further lending to the economically-vulnerable sections. It also made it mandatory for the lenders for strict adherence to RBI guidelines.

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GUWAHATI: The Assam Assembly on Wednesday passed a Bill that will safeguard people, particularly women, against harassment by the agents of microfinance institutions (MFIs).

After the Assam Micro Finance Institutions (Regulation of Money Lending) Bill, 2020 was passed unanimously, Finance Minister Himanta Biswa Sarma dedicated it to the women.

“From now on, the micro finance institutions or money lending agencies or organisations shall not deploy any agents. The agents exploit and take undue advantage of women. This legislation will now bind the companies. Their agents will not be able to visit the houses of people and take away valuables (for failure to repay loans),” Sarma told the Assembly.

“This is the best Bill brought in the House in the past five years and dedicated to women,” he said.

He also said that the MFIs lend money to poor people, mostly women, without assessing their loan repayment capacity. When people fail to repay, the agents will visit their houses and create a scene.

The Bill proposed to bar the MFIs from further lending to the economically-vulnerable sections. It also made it mandatory for the lenders for strict adherence to RBI guidelines.

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