Registration Requirement

Registration Requirement.—

1. (1) The Government may, by notification, appoint such number of officers to be the Registering Authority of money lending entities and define the areas of jurisdiction of such authority.
2. (2) The Registering Authority shall exercise such powers and perform such duties as may be prescribed.
3. (3) No money lending entity functioning in the State on the date of commencement of this Act or intending to start the business of money lending after the commencement of this Act, shall grant any loan or recover any loan without obtaining a Certificate of Registration under this Act: Provided that, every money lending entity functioning in the State as on the date of the commencement of this Act, shall, within ninety days from the date of commencement of this Act, obtain a Certificate of Registration from the Registering Authority under this Act.
4. (4) Every application for registration of money lending entity shall be submitted through the online portal as may be notified by the Government, in such electronic form, along with such documents and fees as may be prescribed.
5. (5) On receipt of such application, the Registering Authority shall verify the details furnished by the money lending entity and grant or refuse to grant a Certificate of Registration through online portal referred to in sub-section
6. (2) in such electronic form and within such time as may be prescribed: Provided that no such application shall be rejected without giving opportunity of being heard to the applicant and for reasons to be recorded.
7. (6) If no decision is made on the application for registration prescribed under sub-section
8. (3) by the Registering Authority concerned, within 90 days from the date of submission of applications, the Certificate of Registration shall be auto-generated and granted online in such form as may be prescribed.
9. (7) The certificate granted under sub-section
10. (3) or
11. (4) shall be valid for a period of three years from the date on which it is granted, subject to fulfillment of such terms and conditions specified therein: Provided that if any money lending entity intends to carry on its business in any other district or region other than the district or region where it has registered, it shall furnish the details of such registration in such electronic form as may be prescribed, to the Registering Authority of the district or region concerned where it intends to carry on its business.
12. (8) Every Certificate of Registration shall be renewed for a period of three years, in such manner and on payment of such fees and fulfillment of such conditions, as may be prescribed.
13. (9) Every application for renewal of the Certificate of Registration granted under this Act shall be made not less than sixty days before the date of expiry of the period of such certificate. Provided that the Registering Authority may entertain the application for renewal after the expiry of the prescribed aforesaid period but before the expiry of the period of the certificate, if it is satisfied that the applicant was prevented by sufficient cause from applying for renewal in time.
14. (10) On receipt of the application under sub-section (2), the Registering Authority shall verify the details furnished by the money lending entity and renew or refuse to renew the Certificate of Registration in such electronic form as may be prescribed, before the date of expiry of registration: Provided that no such application shall be rejected without giving opportunity of being heard to the application and for reasons to be recorded.
15. (11) If no decision is made on the application within the time limit prescribed under sub- section
16. (6) by the Registering Authority concerned, the renewal of Certificate of Registration shall be auto-generated and granted online in such form as may be prescribed.
17. (12) Provision for appeal.—Appeal against refusal to grant a certificate of Registration, Suspension or Revocation of certificate of registered by the registering authority, and appeal can be made before appellate authority within 60 days from the date of such refusal to grant certificate of Registration, Suspension or Revocation of certificate of registration. The appellate authority is expected to give its decision within 30 days of submission of such appeal.
18. (13) Register of MFIs. –
19. (1) Every registering authority shall maintain for the area under its jurisdiction registers of all MFIs having valid registration in such form as may be prescribed.
20. (2) The registers maintained under sub-section
21. (1) shall be published in such manner and at such intervals as may be prescribed.
22. (14) Digital lending platforms shall additionally comply with information technology security standards prescribed by the Central Government, data localization requirements as applicable, and customer protection guidelines as may be prescribed by the Government of Bihar in consultation with relevant central authorities.
23. (15) Any person or entity who advances loans without proper registration and certification shall be deemed to be carrying on illegal money lending business and shall be liable for penalties under this Act, provided that such person is given reasonable opportunity to regularize their operations within the prescribed time frame.