October 15, 2010 2:30 PM

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AP Cabinet clears ordinance to regulate MFIs

Andhra Pradesh Government has promulgated an Ordinance to rein in Micro Finance Institutions in the state. The Ordinance came into force immediately after Governor E S L Narsimhan signed the draft ordinance Friday morning. Following the Ordinance, harassment for repayment by the MFIs will be a punishable offence which attracts three years imprisonment.The state Government has brought-in the Ordinance in a very short time following suicides by several people including members of Self Help Groups and small farmers in last one month. The state Cabinet has unanimously approved the draft ordinance on Thursday.The district Authorities have also been directed to implement debt-swapping and increase the credit flow from the banks at a reasonable interest rates.

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