MFIs get 2 more weeks to toe AP line

HYDERABAD: The Andhra Pradesh High Court on Friday granted two more weeks for microfinance institutions to get registered with the rural development authorities in districts in compliance with the recent MFI ordinance passed by the state government.

A division bench comprising justices Nisar Ahmad Kakru and Vilas V Afzalpurkar had last week passed an interim order asking MFIs to continue with the usual business of lending and borrowing and had then given the microlenders a week to register themselves.

The relaxation came after a writ petition was filed by SKS Microfinance seeking six more weeks for compliance. Advocate general DV Sitaram Murthy said the government could take the required information in a phased manner and added that details such as the name of the creditor, interest rates charged and employee details of MFIs should be provided at the earliest.

Self-regulatory body MFIN and Spandana Microfinance, too, filed petitions last week seeking a stay on the ordinance.