Police can book suo moto case if microfinance institutions flout RBI guidelines on loan recovery: DC
1 month, 3 weeks ago

Police can book suo moto case if microfinance institutions flout RBI guidelines on loan recovery: DC

The Hindu  

Udupi Deputy Commissioner K. Vidyakumari on Thursday, January 30, said microfinance institutions can lend only up to ₹3 lakh loan to a customer as per the Reserve Bank of India guidelines. Chairing a meeting on regulating microfinance institutions at the district office complex in Rajatadri, Manipal, Ms. Vidyakumari said microfinance corporations operating in the district should compulsorily follow the guidelines issued by the Reserve Bank of India. The Deputy Commissioner said microfinance institutions should conduct proper background verification of customers seeking loan, including their total family income. Superintendent of Police K. Arun said microfinance institutions should conduct the business in a decent manner and their personnel should not visit customers’ premises before 9 a.m. or 6 p.m. for loan recovery.

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Microfinance institutions warned against harassing loanees in the name of recovery
1 month ago

Microfinance institutions warned against harassing loanees in the name of recovery

The Hindu  

To protect borrowers from excessive interest rates and coercive loan recovery methods, the State government has promulgated the Karnataka Micro Loan and Small Loan Ordinance, 2025. Ms. Tarannum said that the Ordinance seeks to protect economically vulnerable groups, including self-help groups, farming communities and low-income households, from excessive interest rates and harassment by recovery agents of microfinance institutions in the …

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

4 microfinance firms booked after man dies due to ‘relentless pressure’ by agents: Police
1 month ago

4 microfinance firms booked after man dies due to ‘relentless pressure’ by agents: Police

Hindustan Times  

A case of abetment to suicide has been registered against four private microfinance companies after a man in Belagavi district died during treatment days after he attempted suicide allegedly due to “relentless pressure” from microfinance loan recovery agents, police said on Monday. Belagavi superintendent of police Bhimashankar Guled said the police have notified all registered microfinance and private finance companies …

25 cases booked as crackdown on private finance companies begins in Dharwad
1 month, 1 week ago

25 cases booked as crackdown on private finance companies begins in Dharwad

The Hindu  

The Dharwad district administration has begun a crackdown on private finance companies and microfinance companies involved in harassment of farmers and rural poor over loan repayment. Police officers have registered over 25 cases against microfinance companies on the charge of harassment, officers said. The district administration has also introduced a helpline through which victims can file complaints against mental and …

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 …

Law to curb harassment by microfinance firms soon: CM
Trending News
1 month, 3 weeks ago

Law to curb harassment by microfinance firms soon: CM

Hindustan Times  

The state government will soon introduce a stringent law to curb harassment by microfinance institutions, chief minister Siddaramaiah said on Thursday. The state government will soon introduce a stringent law to curb harassment by microfinance institutions, chief minister Siddaramaiah said on Thursday Chairing a high-level meeting in Krishna, official residence of the chief minister, to address public grievances against microfinance …

Chikkamagaluru DC holds meeting with representatives of microfinance institutions
1 month, 3 weeks ago

Chikkamagaluru DC holds meeting with representatives of microfinance institutions

The Hindu  

The officers of Chikkamagaluru district administration on Wednesday held a meeting with representatives of microfinance institutions and instructed them to follow the directions of the Reserve Bank of India in recovering loans and not to harass the public. Deputy Commissioner Meena Nagaraj and SP Vikram Amathe addressed the representatives in the meeting. The institutions should extend loans as per the …

Karnataka: DCs instructed to file criminal cases against microfinance firms if they adopt dubious methods to recover loans
1 month, 3 weeks 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 …

Helpline in districts to assist victims of harassment by micro finance companies
1 month, 3 weeks ago

Helpline in districts to assist victims of harassment by micro finance companies

The Hindu  

Chief Minister Siddaramaiah on Sunday said that a helpline would be opened in the office of deputy commissioners in the district to help those in distress due to harassment by the micro finance companies, and this helpline would receive complaints from victims. Speaking to media here, he said that action would be initiated against micro finance companies if complaints are …

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