Alerts & Updates 2nd Jan 2025
The proposed Banning of Unregulated Lending Activities Bill marks a significant step in addressing predatory practices and safeguarding borrowers in India. This article examines the intricate ecosystem of regulated and unregulated lending, highlighting the role of informal credit in rural and MSME financing and the associated risks of exploitation.
In light of the Bill’s stringent provisions, the update explores the need for a balanced approach. one that regulates unregulated lenders while ensuring credit availability for underserved segments. It underscores the importance of integrating informal credit channels into the formal system, leveraging India’s robust financial and credit guarantee infrastructure, and preparing the groundwork to minimize disruptions.
As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the "I Agree" button, you acknowledge and confirm that you are seeking information relating to Economic Laws Practice (ELP) of your own accord and there has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of ELP or any of its members to solicit any work through this website.