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Andhra Pradesh government to introduce micro finance bill
The micro finance bill does not intend to cap interest rates but will focus on curbing coercive tactics of lending companies.

Hyderabad: The Andhra Pradesh Government will introduce the microfinance bill, which seeks to curb the "the coercive methods in recoveries" by lending companies from rural borrowers, on December 10 during the winter session of the State Assembly, a senior bureaucrat said.

However, the official said there will not be any cap on the interest rates being charged by microfinance institutions (MFIs) in the bill.

"The ordinance which was promulgated in October will be introduced as it is," Principal secretary, Panchayat Raj and Rural Development, R Subrahmanyam told.

"There will not be any modification in the bill. We are very firm on curbing the coercive methods in recoveries.

We have prepared our report and that will be submitted to a RBI team that is scheduled to visit the state on December 15.

We are making an elaborated submission," Subrahmanyam told.

Source: Press Trust of India