Bare Act

The Bihar Micro Finance Institutions

This law regulates microfinance and money lending activities across Bihar, focusing on preventing harassment and coercive recovery tactics against borrowers. It applies to non-bank entities such as private companies, digital lending platforms, and local trusts, while exempting regulated banks. The legislation mandates fair lending standards and bans aggressive or demeaning methods like threats, social ostracization, or physical intimidation. By setting strict rules for lenders and agent recovery practices, the Act aims to protect vulnerable borrowers from abuse and ensure that micro-lending serves productive economic purposes rather than exploitation.

PDF: pending for this language.