GUWAHATI, Dec 30 - Recovery agents engaged by micro finance institutions in the State could face arrest if they are found harassing the loanee in any manner and the respective deputy commissioner would be at liberty to initiate a suo motu inquiry into any such unethical practice.
Further, in the event of flood or any other natural calamity, such institutions would have to grant moratorium on interest for the period of at least three months under the Assam Micro Finance Institutions (Regulation of Money Lending) Bill, 2020 which was passed by the State Legislative Assembly today.
Placing the Bill for consideration in the House, State Finance Minister Himanta Biswa Sarma said the idea is to regulate the micro finance institutions which are mushrooming without any accountability.
The minister informed the House that women loanees have fallen into the trap of such financial institutions, which is why the proposed law would make it mandatory for all the micro financial institutions to get themselves registered within 30 days from the date of it becoming a law.
Sarma also informed that the government will soon announce a corpus fund of Rs 500 crore in the budget for economic rehabilitation of those unable to pay the borrowed amount.
�At the moment, nobody knows how many such institutions exist in the State. We have been told that loans worth around Rs 12,000 crore have already been given by such institutions without adhering to any laid down norms. Once the Act comes into being, 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,� Sarma said.
On a letter issued by the Reserve Bank of India to the State government wherein the former has enquired about the proposed legislation and suggested a few amendments, the minister said, �It is the privilege of the House which cannot be shared. The RBI cannot advise the House. They might have to face the privilege of the House. I am going to write to the RBI Governor bringing the matter to his notice.�