Assam govt to bring new law to control micro finance firms

The Assam government on Sunday approved a proposal to bring in new legislation for controlling the microfinance firms, which charge exorbitant interests from borrowers, as per the RBI guidelines. A meeting of the state cabinet, chaired by Chief Minister Sarbananda Sonowal, decided to reign in the microfinance entities, who mostly give loans to women self-help groups at high rates, Parliamentary Affairs Minister Chandra Mohan Patowary told reporters here.

"The proposal to bring in a new Act to control the microfinance units was passed. They have to operate as per the RBI norms and will not be able to levy any rate on consumers, who are mostly women SHGs from the villages," he added. This new legislation will be brought to give relief to the women SHGs, said Patowary, who is also the Spokesperson of the Assam Government. The Cabinet also approved a proposal of rehabilitation to flood and erosion victims, who will get Rs 5 lakh for loss of house and farmland, Rs 1.5 lakh for loss of house and Rs 1 lakh for loss of farmland, the minister said.

For the doctors, nurses and other staff of the ICU and critical care units in hospitals, there will be a separate service rule, which will help in their promotions and other benefits, he added. Besides, the cabinet approved a proposal to set up Project Monitoring Unit (PMU) in all districts for the schemes of tea gardens, Patowary said. "We have a tribe named Miri. From now on, they will be part of Mising community.

The change of their nomenclature has been approved," he added. A new policy for agar wood cultivation was passed, giving incentives to the farmers involved in farming of such plants, Patowary stated. The government has also consented on a proposal for online processing of application to facilitate 'ease of doing business' in a time-bound manner, he added. During the meeting, the state cabinet approved the holiday list for 2021, which will have 34 general holidays and 31 restricted holidays.