Money & Banking

Microfinance Bill unlikely to be introduced in Budget session

K. R. Srivats New Delhi | Updated on March 16, 2011

A Bill to develop and regulate the microfinance sector is unlikely to be introduced in the current Budget session of Parliament. The ongoing session is slated to end on March 25.

The Finance Ministry will consider introducing such a Bill only after taking into account the views of the Reserve Bank of India on the Malegam committee recommendations, official sources said.

The RBI is currently examining the Malegam committee report and is yet to firm up its views on the recommendations. The RBI had set up a sub-committee of its Central Board of Directors to study the issues and concerns in the microfinance sector, including ways and means of making interest rates charged by them reasonable.

The Microfinance (Development and Regulation) Bill is not among the seven pieces of legislation in the financial sector that are a priority for the Government, sources pointed out. The Finance Minister, Mr Pranab Mukherjee, had in the Budget speech for 2011-12 said that he intends to move seven legislation as part of the Government's efforts to take the financial sector reforms forward.

Indications are also that the Insurance laws (amendment) Bill 2008 may not be taken up during the current Budget session as the Parliamentary Standing Committee is yet to submit its recommendations to the Government, sources said.

Published on March 16, 2011

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