Karnataka microfinance ordinance
The Karnataka government, led by Chief Minister Siddaramaiah, is set to implement a new ordinance aimed at curbing harassment by microfinance companies. Approved by the Governor, this ordinance is designed to safeguard borrowers from abusive debt collection practices often faced by vulnerable, low-income individuals.
For more details : https://newskarnataka.com/karnataka/karnataka-takes-action-against-microfinance-harassment-with-new-ordinance/13022025/#google_vignette
Chief Minister’s Assurance
In a post on X (formerly Twitter), CM Siddaramaiah reassured citizens, stating, “An ordinance to prevent harassment by microfinance companies during debt collection has received the Governor’s approval. This law will soon take effect to protect borrowers from illegal loan collection and harassment. Don’t let fear force you into hasty decisions—our government stands with you.”
Government’s Action Plan
The ordinance follows numerous complaints of microfinance companies exploiting the poor to recover loans. Deputy Chief Minister DK Shivakumar confirmed that the government is taking strict measures to prevent such exploitation. FIRs have already been filed against several microfinance companies in districts like Belagavi, Bidar, Mysuru, and Ramanagara for harassment complaints.
Shivakumar emphasized that the authorities will not tolerate intimidation of borrowers. The ordinance empowers police and district officials to act firmly against violators. Additionally, helplines have been set up in district headquarters to support those affected by microfinance harassment.
Swift Implementation
The Chief Minister’s office confirmed that the ordinance will soon become law, promising relief for borrowers. This step marks a significant move by the Karnataka government to address a growing concern and ensure financial safety for its citizens.
Stay tuned for further updates on the ordinance’s rollout and its impact on microfinance practices in the state.
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