The government of the Indian state of Andhra Pradesh recently announced it would file criminal cases against any microfinance institution (MFIs) found to have used coercion to recover loans. “The government will press for more open disclosures from the MFIs. We will write to the RBI [Reserve Bank of India] to delicense those resorting to dubious means of finding new customers or recovering from them,” said R Subramanyam, Principal Secretary of the Panchayat Raj and Rural Development Department.

By Stefanie Rubin, Research Associate

Additional Resources:

Source Article: Business Standard: “AP Gets Tough on Erring MFIs”

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/