Microfinance and Credit Regulatory Authority Bill to Parliament today

Tuesday, 9 January 2024 01:07 - - {{hitsCtrl.values.hits}}

State Minister Shehan Semasinghe says aim is to protect customers by streamlining services of microfinance institutions

The Microfinance and Credit Regulatory Authority Bill will be submitted to Parliament today, State Minister of Finance Shehan Semasinghe revealed yesterday.

He said the aim of the Bill is to regulate microfinance companies operating in the country and streamlining their services. The Minister pointed out that this is expected to ensure the safety of the lending business as well as the customers.

According to the State Minister there have been reports of cases where some micro-finance institutions operating under the daily collection system have charged annual interest rates exceeding 300%. As a result of these suicides, family disputes like situations have developed.

The Minister mentioned that the Bill will formalise the services of the microfinance companies considering the needs and services currently being implemented.

After the passage of this Act, the current Microfinance Act No. 6 of 2016 will be repealed.