The Madhya Pradesh Moneylenders (Amendment) Act, 2020

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General20204 sections

This Act amends the Madhya Pradesh Moneylenders Act, 1934, to explicitly bring Non-Banking Financial Companies (NBFCs) under the legal definition of a "moneylender" by adding a specific sub-clause to Section 2. Additionally, it establishes a statutory constraint on how much interest a moneylender can charge, mandating that rates must not exceed those officially notified by the State Government from time to time. These changes aim to extend state regulatory oversight to the financial sector and protect ordinary citizens, particularly farmers and borrowers, from usurious interest rates and unregulated lending practices.

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1. Short title
2. Amendment of section
3. Insertion of section
4. Renumbering of section

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