Money lending, micro finance under rules
View(s):Money lending and the micro finance businesses will come under strict regulatory control to protect customers and victims affected by illegal practices.
The Credit Regulatory Authority Act will be enacted in parliament to provide for the regulation of money lending and the microfinance businesses and to provide for matters connected it, including protection of customers of said businesses.
These details are revealed in a consultation paper on the proposed law released by the Central Bank on Friday.
An Authority will be established with seven members comprising Secretary to the Treasury or his representative, as the Chairman of the Authority; the Deputy Governor of the Central Bank in charge of financial system stability; the Registrar of Voluntary Social Service Organisations and four other eminent persons with necessary qualifications and experience.
Its main objectives are to regulate and supervise licensed moneylenders; licensed microfinance institutions, coordination with regulatory authorities of Co-operatives, Samurdhi community development banks and entities formed under the Agrarian Development Act. (Bandula)