The Finance Ministry has invited public feedback on a draft bill aimed at curbing unregulated lending activities in India. The draft bill is open for comments until February 13, 2025, and seeks to address the growing concerns surrounding unauthorized lending practices.

Draft Bill

The primary objective of the proposed legislation is to prevent entities not authorized by the Reserve Bank of India (RBI) from engaging in public lending activities. By doing so, the government aims to protect consumers from exploitation by unauthorized lenders, often associated with high-interest rates, unethical practices, and financial fraud.

Additionally, the draft bill proposes measures to deter individuals and organizations from encouraging unregulated lending practices among the general public. These steps are crucial to fostering a more transparent and secure financial environment in the country.

Government Commitment 

The initiative reflects the government’s commitment to addressing financial irregularities and safeguarding citizens' interests. If implemented successfully, this legislation could significantly benefit the economy and consumers alike, ensuring that lending activities are conducted within a well-regulated framework.

The Finance Ministry has urged all stakeholders, including financial institutions, industry experts, and the public, to review the draft and provide constructive feedback. This inclusive approach aims to create a robust and practical legal framework that effectively addresses the challenges posed by unregulated lending activities.

Public Participation 

Public participation in shaping this bill is vital, as it will directly impact the financial security and well-being of millions of citizens. Interested individuals can submit their suggestions and feedback on the ministry’s official platform before the February 13, 2025 deadline. This initiative marks a significant step toward fostering a more regulated and trustworthy financial ecosystem in India.

Author Opinion 

The Finance Ministry has invited feedback from the general public of the country on a draft bill. Its aim is to ban irregular lending activities in the country. This draft bill is going to last till 13 February 2025.