Registration of Micro Finance Institute or Money Lending Agencies or Organizations or Lender

(1) All Micro Finance Institutions or Money Lending Agencies or Organizations or Lender operating in the State of Karnataka as on the date of the commencement of this Act, shall within thirty days from the date of commencement of this Act, apply for registration before the Registering Authority of the district specifying there in the villages or towns in which they have been operating or propose to operate, the rate of interest being charged, system of conducting due diligence and system of effecting recovery and list of persons authorized for conducting the activity of lending or recovery of money which has been lent and the name and address of the borrower, the total principal amount lent to the borrower, the amount already recovered from the borrower, the balance amount yet to be recovered from the borrower, and a written undertaking that it shall always act in conformity with the provisions of this Act. (2) No Micro Finance Institutions or Money Lending Agencies or Organizations or Lender operating or intending to start the business of lending money after the commencement of this Act shall grant any loans or recover any loans without obtaining registration under this Act from the Registering Authority. (3) The Registering Authority shall verify the details furnished by the Micro Finance Institutions or Money Lending Agencies or Organizations or Lender and accord registration in such manner as may be specified for operation of Micro Finance Institutions or Money Lending Agencies or Organizations or Lender for a period of one year. (4) Where the Micro Finance Institutions or Money Lending Agencies or Organizations or Lender applies for renewal of registration, an application for that purpose shall be filed by the Micro Finance Institutions or Money Lending Agencies or Organizations or Lender within sixty days before the expiry of the period of one year referred to in sub-section (3) and the Registering Authority shall decide either to grant renewal or refuse renewal of registration at least fifteen days before the date of expiry of registration, after due verification of the performance of the Micro Finance Institutions or Money Lending Agencies or Organizations or Lender in the field level and after hearing objections, if any, from the general public regarding extension of registration. (5) Every Registering Authority shall maintain registers as specified for the area under its jurisdiction of all Micro Finance Institutions or Money Lending Agencies or Organizations or Lender having valid registration.