Andhra Pradesh Money Lenders Bill, moved by Deputy Chief Minister (Home) N Chinna Rajappam, was passed by the Assembly.
The act provides that money lending cannot be done without a license, and the government may, from time to time, specify the maximum rate of interest chargeable by money lenders for any local area.
As per the act, accounts of money lenders shall be audited at least once a year and punishment for charging a rate of interest higher than that shown in the account is up to one year and may extend up to three years.
TDP's G Buchaiah Chowdary and BJP floor leader Vishnukumar Raju said the borrowers are getting into a vicious cycle as the private lenders charge exorbitant rates.
However, the opposition YSR Congress boycotted the proceedings in protest against the House not taking up debate on the call money racket and not reviewing the suspension of its member R K Roja who was suspended for one year last week for alleged unparliamentary comments on the Chief Minister N Chandrababu Naidu.
Call money racket refers to harassment and exploitation of borrowers by private money lenders who provide easy loans 'on telephone call'.
As many as 188 persons were arrested in connection with the racket in the state after it surfaced earlier this month, CM Naidu had said on December 18.
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