2026-03-04 / Debate: Microfinance and Credit Regulatory Authority Bill - Second Reading and Committee Stage 2026-03-04
Hon. Kins Nelson spoke in support of the Bill while raising several concerns about its implementation and scope. He highlighted the vulnerability of approximately three million people, predominantly women, burdened by microfinance debts, and called for women's representation on the proposed Authority's governing body. He urged clarification and consultation with village-level organisations such as death donation societies and farmer groups regarding whether they would fall under Central Bank oversight, and proposed amendments where necessary. He also raised concerns about the misuse of leased vehicles and pledged valuables by unregulated lenders, calling for stricter supervision of pawn shops, and cautioned against policies that would harm small village institutions or legitimate businesses while allowing criminal operators to profit.
Hon. Presiding Member, I am pleased to speak on this important Bill. In our villages, poor, innocent people engaged with microfinance loans—about 98 percent of them women. I will speak not only about the Bill but also about the nearly three million people driven to extreme vulnerability by microfinance debts.
Death donation societies, farmer organisations and volunteer groups in villages have asked whether their societies will now have to work with the Central Bank. That may be a misunderstanding or lack of awareness. We must consult them and, where needed, incorporate suitable amendments.
We must also ensure women’s representation on the Authority’s governing body, given that this whole exercise began to protect women.
Another issue: vehicles under lease and valuables kept as pledges are being misused. Sometimes vehicles are dismantled and sold while the registration book remains with the finance company. This is a crime. Pawn shops must be supervised so that items without clear legal title are not accepted and used for illegal lending. Otherwise, law‑abiding traders will be victimised while criminals profit.
We must manage the sector properly, protect legitimate large businesses, and avoid arbitrarily shutting down small village institutions. There are many other issues too. Farmers are under pressure during paddy harvesting. Despite much talk, the Government has no clear plan to buy their produce at fair prices. We must look after them as well. I conclude.