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Guwahati, Jan 05: The passage of a Bill to control the microfinance industry and the Congress party” loan waiver promise if voted to power in the April 2021 polls in Assam is a “moral hazard”, according to a report.
With West Bengal also headed for elections, the report by Kotak Institutional Equities warned that such loan waivers can have many adverse outcomes for the finance industry because the quantum of outstanding loans is much higher.
In Assam, the current Assembly has set aside RBI observations and passed a Bill to put more controls on the microfinance industry dealing with loan amount caps, prior registration and other operational restrictions, while the Congress party has promised loan…
