DOWNLOAD A COPY OF THE ANDHRA PRADESH MICROFINANCE INSTITUTIONS (REGULATION OF MONEY LENDING) ORDINANCE, 2010 AT THE LINK BELOW Andhra MFI Ordinance PDF-10pages-100KB The content matter of the PDF file above is given below:
Andhra Pradesh Microfinance Institutions (regulation of money lending) Ordinance, 2010
STATEMENT OF OBJECTS AND REASONS
The Government of Andhra Pradesh has made rapid strides in the field of financial inclusion of the rural & urban poor by organizing women self-help groups (SHGs) and linking them with the banks for meeting their credit needs. Now, therefore, in the exercise of the powers conferred by clause (1) of Article 213 of the Constitution of India, the Governor hereby promulgates the following Ordinance:- (4) It shall apply to Micro Finance Institutions whether they had come into existence before or after the commencement of this Ordinance. (2) Pending inquiry under sub-section (1), the Registering Authority may, for sufficient reasons to be recorded, suspend the Registration iii) bank from which loan has been obtained by the SHG x) such other details as may be prescribed by Rules made under this Ordinance. (3) The Registering Authority shall, not later than fifteen days from the date of filing of such application for approval under subsection (2), cause an inquiry into the contents of the application and shall grant approval for a further loan unless the Registering Authority is satisfied that the SHG and its members have passed a resolution that they have understood the conditions of the loan and terms of repayment and unless the Registering Authority is also satisfied that such further loan would generate additional income to the SHG and its members, needed for servicing the debt. (4) No MFI shall grant a loan to a member of SHG during the subsistence of two previous loans irrespective of the source of the previous two loans. (a) Deliver or cause to be delivered, to the borrower within seven days from the date on which a loan is made, a statement in the prescribed form showing in clear and distinct terms the amount and date of the loan and of its maturity, the name and address of the functionary of the MFI and the effective rate of interest charged. (b) Upon repayment of a loan in full, the MFI shall obtain an indelible mark on every paper signed by the borrower with words indicating such repayment and provide copies thereof to the borrower. (4) No MFI shall receive any payment from a borrower on account of any loan without giving him a duly signed receipt for the payment. (5) An MFI shall, on a demand in writing by the borrower, supply a copy of any document relating to a loan obtained by him, or if the borrower so requires, to any person specified in that behalf in the demand. (3) The registering authority or the other officer referred to in subsection (1) shall also have the power to summon and examine the MFI or any person who in his opinion is in a position to furnish relevant information. State, as it may deem necessary. (2) The Government shall, after consultation with the High Court of Andhra Pradesh specify, by notification, the local limits of the area to which the jurisdiction of a Fast-Track Court shall extend and may, at any time, increase, reduce or alter such limits. (3) The cases that may be filed before the fast-Track Court shall be disposed of within a period of three months. (4) The decree of the Fast Track Courts shall be liable to be executed in accordance with the procedure under the Code of the Civil Procedure 1908. (b) persistently following the borrower or his family member from place to place or interfering with any property owned or used by him or depriving him of, or hindering him in, the use of any such property (c) frequenting the house or other place where such other person resides or works, or carries on business, or happens to be, or (d) doing any act calculated to annoy or intimidate such person or the members of his family, or (e) moving or acting in a manner which causes or is calculated to cause alarm or danger to the person or property of such other person (f) seeking to remove forcibly any document from the borrower which entitles the borrower to a benefit under any Of late, many individuals and entities have come up styling themselves as Micro Finance Institutions and are giving loans to SHGs at very high or usurious rates of interest and are using inhuman coercive methods for recovery of the loans. This has even resulted in suicides by many rural poor who have obtained loans from such individuals or entities. In the larger public interest and to protect the poor from exploitation, and to regulate the lending of monies to the SHGs by the MFIs, the Government intends to bring into force a law containing the various provisions stated in this Bill in order to check the illegal acts of these MFIs. This bill seeks to give effect to the above decision.
