Mumbai, Feb. 27 -- The legislation introduces tighter oversight and compliance requirements for lenders operating in the state.
Fusion Finance fell 5.65%, while Utkarsh Small Finance Bank dropped 5.47%. Spandana Sphoorty Financial declined 1.28%, AU Small Finance Bank slipped 1.27%, Equitas Small Finance Bank fell 1.12% and Jana Small Finance Bank was down 0.4% in trade.
The Bill seeks to regulate microfinance institutions and small loan providers, prohibit coercive recovery practices and ensure transparency in lending operations, including fair and clearly disclosed interest rates.
Under the new framework, microfinance companies will be required to obtain prior permission from the state finance department before commencing loan disburse...