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Micro lenders fret over Tamil Nadu Bill to prevent coercive recovery
The microfinance players, banks and non-banking finance companies said the checks and balances proposed in the bill are likely to hinder micro lending operations
Anupreksha Jain Mumbai
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The microfinance industry, already facing multiple headwinds, is now bracing for another disruption with the Tamil Nadu government introducing a Bill to prevent coercive loan recovery practices. Microfinance players, including banks and non-banking financial companies, said that the checks and balances proposed in the Bill are likely to hinder micro-lending operations.
'It is not a conducive environment to work which puts so many checks and balances,' said a senior executive of a small finance bank. 'As per the Bill, we cannot go for regular collection as we don't know what can constitute harassment and can land us in jails. Plus,
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