Limits of credit

Abstract

The Andhra Pradesh High Court has delivered a judgment refusing to quash the microfinance law, which came into being after the state government passed the bill in December 2010. This has implications for the future of of microfinance regulation. It also opens up a debate on the government's jurisdiction to legislate. The issue of regulating institutions in the financial sector has been a matter of debate for a while. We have three sets of players in the formal financial world. Except for commercial banks, the government's jurisdiction over these has been a matter of debate and litigation. Commercial banks registered and incorporated as companies under the Companies Act and regulated by the RBI have been immune to the regulation of state governments. Read more at: http://archive.indianexpress.com/news/limits-of-credit/1076576/