Bill passed; no more harassing loanees by recovery agents in Assam

Dec. 31: A very significant step was adopted by the Assam Government to give relief to the loanees from the clutches of the recovery agents employed by the private financial institutions.  The Money Lending Regulation Bill was passed to regulate the microfinance institutions in Assam. As per the provisions of the bill, recovery agents engaged by microfinance institutions could now face arrest if they are, in any way, found harassing a loanee.

The bill in consideration will also require all micro-financial institutions to get themselves registered within 30 days of it becoming law. Apart from this, the new bill also gives the District Commissioner the liberty to initiate a suo motu inquiry in the cases of such practice.

State Finance Minister Himanta Biswa Sarma stated that once the Act comes into force,  all the financial institutions would have to renew their registration after every two years. The proposed law will do away with the concept of agents.”