New Delhi: The central government has announced a draft legislation titled ‘Banning of Unregulated Lending Activities (BULA)’ Bill proposed by the Financial Services Department, Ministry of Finance.
Unregulated lending activity, either through physical or digital means, could lead to jail term up to seven years and fine up to ₹1 crore, a fresh draft Bill to ban unregulated activities has proposed.
Also, in case of harassment of any person by unregulated lenders including those giving loan through digital means can lead to jail term up to 10 years and penalty of up to double the amount.
“The proposed Bill envisages banning all persons/entities not authorised by RBI/other regulators and not registered under any other law for undertaking lending business activities,” the Ministry said in a communication.
Seeking feedback
The draft has been circulated for comments by the public. The feedback can be submitted by February 13, 2025.
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