AP enacts law; no money lending without license now

In the wake of the call money racket issue that rocked the state in recent weeks, Andhra Pradesh Legislative Assembly on Monday passed a bill aiming to regulate the private money lending business.

Andhra Pradesh Money Lenders Bill, moved by Deputy Chief Minister (Home) N Chinna Rajappam, was passed by the Assembly.

The act provides that money lending cannot be done without a license, and the government may, from time to time, specify the maximum rate of interest chargeable by money lenders for any local area.

As per the act, accounts of money lenders shall be audited at least once a year and punishment for charging a rate of interest higher than that shown in the account is up to one year and may extend up to three years.