New Delhi, Sep 20 (IANS) A new bill will be tabled in the next session of parliament to promote, develop and regulate the microfinance sector in India, Vinod Rai, special secretary for banking in the finance ministry, said here Wednesday.

"The microfinance movement is in a very critical juncture. And if we are unable to take on the entrenchment that is happening today, then the entire purpose of the same will be a failure," Rai said.

"We are soon going to produce a bill for the regulation and development of the microfinance sector of India," he told a seminar organised by the Confederation of Indian Industry (CII).

"I believe in this way we can simplify the complex processes that a poor farmer goes through now while applying for a loan," he said, adding that the aim of the new legislation will be micro entrepreneurship.

Rai also referred to the need for credit to be provided to every household in the rural areas and empowerment of self-help groups through linkages with public and private banks.