A rise in suicides among microfinance clients in the Indian state of Andhra Pradesh has the local government considering legislation to restrict the loan collection practices of microfinance institutions (MFIs) in the area. There were around 24 deaths in last few months, officials say.
“The government cannot be a mute spectator (to these atrocities). We are moving fast to bring in legislation, a draft of which is ready, to reign in these institutions.” said R. Subramanyam, principal secretary of rural development, Andhra Pradesh government.
Although no further details were available on what the legislation would entail, the national government is also drafting related legislation. Please watch the MicroCapital website for addition stories on the recent suicides and the national legislation.
By Witt Gatchell, Research Associate
Sources and Additional Resources:
[1] Hindustan Times: “Law to rein in micro-finance bodies’ bullying” http://www.hindustantimes.com/Law-to-rein-in-micro-finance-bodies-bullyi…
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