India proposes regulation of moneylenders

A panel set up by the Reserve Bank of India, the country's central bank, has published proposals for legislation which would regulate unauthorised moneylenders. These can charge annual interest rates of up to 150% to farmers and other borrowers.

The panel's report notes that "the practical issue is how to regulate the activities of moneylenders in a manner that doesn't stop or impede the flow of microscopic loans provided by rural moneylenders."

This, the panel noted, needed to happen "while en

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