LAHORE, March 13: The Punjab Assembly's standing committee on revenue, relief and consolidation on Saturday sought opinion of the revenue department on banning private money lending.

A committee meeting, presided over by Mian Majid Nawaz, while discussing a draft bill tabled by National Alliance's Humaira Awais Shahid, agreed in principle that the private lending should be banned as compound interest charged by the lenders caused immense problems to the borrowers.

It decided to seek opinion of the department when it was brought into the committee's notice that the step required repealing of an ordinance promulgated in 1960 to regulate private lending business.

However, the law is not being implemented as the lenders are not getting license for the business as required under the statute.

The committee also deemed it appropriate that an alternative system should be suggested for the needy as banks offering micro-financing usually followed cumbersome procedure which may prove disastrous in emergency cases.

It would take up the issue again in its next meeting to be held on March 30 as the department had been directed to provide data regarding total number of lenders registered with it and an estimate of their investment.