In Madhya Pradesh, the state government has decided to make licenses mandatory for money lenders. AIR Bhopal correspondent reports that the state cabinet has approved a proposal to amend Madhya Pradesh Money Lending Act 1934 in this connection Voice Cast Under the proposed amendments, all the loans given by non-licensee money lenders would be deemed nullified. Such loans could not be recovered through any court. Loans would only be given by money lenders on an interest rate fixed by the state government. The state government would notify rate of interest from time to time. In many cases small farmers repay more than principal amount and they still remain unable to clear debts. The new law would save small farmers from the exploitation of non-licensee money lenders.