Karnataka: Officials panel to vet MFI Ordinance draft to strengthen proposed law

Harassment from Microfinance Companies: Government drafts ordinance to curb harassment by MFIs - Star of Mysore

Bengaluru:  Even as the harassment by money-lenders and Microfinance Institutions (MFIs) during loan recovery continues, the Karnataka Government has proposed a three-year imprisonment  and other strictures for microfinance companies under a Law it has drafted to protect borrowers from harassment. The State Cabinet on Thursday authorised Chief Minister Siddaramaiah to finalise the draft of the Karnataka Micro-Finance (prevention of coercive and …

Karnataka: Officials panel to vet MFI Ordinance draft to strengthen proposed law

A high-level meeting led by Chief Minister Siddaramaiah has decided to form a group of senior finance and law officers to review a draft Ordinance aimed at curbing unlawful loan recovery methods by microfinance institutions. The proposed law includes harsh penalties, non-bailable provisions, and aims to regulate unauthorized lenders.