Govt mulls draft on micro finance

NEW DELHI: The Government on Monday said it is in the process of preparing a draft legislation on regulating micro finance institutions and expressed hope that the bill will be tabled in the budget session of Parliament.

"I will not say it is a comprehensive legislation. Draft may look rudimentary. We are in the process of evolution," Vinod Rai, additional secretary in Finance Ministry said at a conference on micro finance here.

He said micro finance movement should not be stifled by over regulation.

He said two to three years down the line the government will revisit the legislation once again, gaining from the experience of its impact on micro finance institutions.

"We will then attempt more comprehensive legislation," he said.