The Microfinance Industry Network (MFIN) took note of the adoption of “The Bihar Micro Finance Institutions (Regulations of Money Lending and Prevention of Coercive Actions) Bill, 2026” by the Bihar Legislative Assembly on February 26. In a press statement issued on February 27, MFIN said the Bill is not applicable to RBI-regulated microfinance institutions, including banks and NBFC-MFIs, as per Section 2(2) of the legislation. It clarified that RBI-regulated or licensed entities are not required to register at the state level.
MFIN, a Self-Regulatory Organisation (SRO) for RBI-regulated entities such as NBFC-MFIs, banks, small finance banks and NBFCs, noted that provisions relating to borrower protection and fair recovery practices apply to all lending entities. It reiterated that RBI-regulated institutions already function under stringent borrower protection norms backed by the RBI’s Responsible Business Conduct guidelines, MFIN’s Code of Conduct and its Guardrails framework.
According to MFIN, RBI-regulated institutions currently provide collateral-free, doorstep credit to nearly one crore low-income clients in Bihar, with an outstanding portfolio of Rs 48,569 crore. The industry body also cautioned borrowers against rumours, urged timely repayments to maintain credit records, and said it will undertake awareness drives across Bihar on transparent lending, grievance redressal and non-coercive recovery practices.
