Karnataka: Online portal to track loan details to tackle harassment by microfinance institutions proposed
1 month, 3 weeks ago

Karnataka: Online portal to track loan details to tackle harassment by microfinance institutions proposed

The Hindu  

A crucial meeting held on Saturday to discuss and draft an Ordinance to curb the excesses of microfinance institutions has proposed to create an online portal to track and update all details on loans. Sources said the meeting proposed that the online portal should track and update details on loan disbursements, ensuring transparency, and preventing over-lending that traps the poor in debt cycles. Participants of the meeting proposed that the ordinance should ensure that interest rates charged by the microfinance companies should be transparent and in compliance with the RBI regulations. Following a slew of complaints about microfinance company representatives harassing borrowers, the Karnataka government had announced that it would come out with an Ordinance to put in place stringent guidelines.

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History of this topic

How Karnataka’s new Ordinance proposes to crack down on microfinance institutions
1 month, 1 week ago

How Karnataka’s new Ordinance proposes to crack down on microfinance institutions

The Hindu  

The story so far On February 12, 2025, after days of deliberations, the State government promulgated the Karnataka Micro Loan and Small Loan Ordinance, 2025, which aims to crack down on unregistered and unlicensed microfinance institutions and moneylending agencies or organisations that employ forceful means to recover loans given to poor people. The new legislation seeks to regulate the actions …

Law to curb Microfinance harassment to come into effect soon: Karnataka CM Siddaramaiah
1 month, 2 weeks ago

Law to curb Microfinance harassment to come into effect soon: Karnataka CM Siddaramaiah

Hindustan Times  

Karnataka Chief Minister Siddaramaiah announced on Wednesday that the state government will soon enforce an ordinance to curb harassment by microfinance companies. Karnataka Chief Minister Siddaramaiah In his X post, CM wrote, "An ordinance designed to prevent harassment of borrowers by microfinance companies under the pretext of debt collection has received the Governor's signature. The chief minister's office said on …

Karnataka Governor Rejects Microfinance Ordinance, Cites Injustice To Lenders
1 month, 2 weeks ago

Karnataka Governor Rejects Microfinance Ordinance, Cites Injustice To Lenders

ABP News  

Governor Thaawarchand Gehlot on Friday rejected Karnataka Micro Finance Ordinance 2025, stating that in its current form, the lenders, who are also part of the society, are being done a great injustice. Aimed at protecting borrowers from harassment by microfinance institutions, the Karnataka government drafted the ordinance with penal provisions, including a jail term up to 10 years, and fine …

Karnataka ministers respond to Governor's remark on microfinance ordinance
1 month, 2 weeks ago

Karnataka ministers respond to Governor's remark on microfinance ordinance

India Today  

Karnataka Home Minister G Parameshwara announced that the state government would address the Governor Thaawarchand Gehlot’s concerns and resubmit the Karnataka Micro Finance Ordinance 2025 for assent. The ordinance, aimed at protecting borrowers from harassment by microfinance institutions, was returned by the Governor, who cited regulatory excesses and disproportionate punishments such as a 10-year imprisonment and a Rs 5 lakh …

Karnataka: Governor returns microfinance Ordinance, says existing laws can be used to curb harassment
1 month, 2 weeks ago

Karnataka: Governor returns microfinance Ordinance, says existing laws can be used to curb harassment

The Hindu  

Flagging problem areas in the Karnataka Micro Loan and Small Loan Ordinance, 2025, Governor Thaawarchand Gehlot on Friday returned it to the State government suggesting that the Ordinance will benefit only borrowers and no provisions have been made to provide protection to lenders. Moreover, the Governor suggested to the government to enforce the existing laws effectively to prevent harassment of …

Governor returns Karnataka microfinance ordinance
1 month, 2 weeks ago

Governor returns Karnataka microfinance ordinance

The Hindu  

Governor Thaawarchand Gehlot returned to the State Government the Karnataka Micro Loan and Small Loan Ordinance, 2025, suggesting that the ordinance will benefit borrowers while no provision has been made to provide protection to lenders. The Governor advised the State Government to deliberate on the issue in detail and bring an effective enactment in the interest of the affected people …

Karnataka cracks down on microfinance firms as rural debt crisis deepens
1 month, 3 weeks ago

Karnataka cracks down on microfinance firms as rural debt crisis deepens

New Indian Express  

The State Government is cracking down on microfinance institutions, using strongarm tactics to recover loans, and drafting a law to check their excesses. The current crisis, to some extent, reflects a larger problem -- the distress in the rural economy -- and this calls for a holistic approach, including the law that is in the works. The system’s failure According …

Karnataka: DCs instructed to file criminal cases against microfinance firms if they adopt dubious methods to recover loans
2 months ago

Karnataka: DCs instructed to file criminal cases against microfinance firms if they adopt dubious methods to recover loans

The Hindu  

With reports from across districts of microfinance company representatives adopting dubious means to recover loans from poor defaulters, Revenue Minister Krishna Byre Gowda instructed Deputy Commissioners of districts to file criminal cases against companies if they violate RBI norms in the process of loan recovery. At a meeting of the Deputy Commissioners held in Bengaluru, Mr. Byre Gowda directed Deputy …

Draft bill to rein in microfinance firms to be discussed at next Cabinet meet
2 months ago

Draft bill to rein in microfinance firms to be discussed at next Cabinet meet

The Hindu  

Amidst large-scale complaints about harassment by micro finance companies in Karnataka, the State Cabinet will discuss a draft Bill to regulate the activities of microfinance companies at its next meeting on January 30, even as Chief Minister Siddaramaiah said that stern action will be taken on complaints filed by victims of harassment. Patil indicated that draft Bill would be ready …

Karnataka to formulate bill to rein in microfinance firms
2 months ago

Karnataka to formulate bill to rein in microfinance firms

New Indian Express  

BENGALURU: The state government is planning to formulate ‘Karnataka Microfinance Institutions Bill’ to rein in microfinance companies. Disclosing this to reporters here on Friday after a cabinet meeting, Law and Parliamentary Affairs Minister HK Patil said the Reserve Bank of India and other central finance agencies are not able to control microfinance companies. “We are tabling the Karnataka Microfinance Institutions …

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