Karnataka Drafts Ordinance to Shield Borrowers from Microfinance Misconduct

Karnataka Minister H K Patil announced a draft ordinance aiming to safeguard borrowers from harsh practices by microfinance companies. Awaiting approval from Chief Minister Siddaramaiah, the ordinance seeks to curb abusive money recovery methods attributed to several suicides in rural regions.

Karnataka Minister H K Patil revealed that a draft ordinance intended to protect borrowers from unethical practices by microfinance companies has been formulated and forwarded to Chief Minister Siddaramaiah for approval.

The ordinance, which aims to curtail inhumane recovery methods, will proceed to Governor Thaawarchand Gehlot once approved by the Chief Minister. Patil emphasized the urgency following tragic incidents involving borrower suicides caused by aggressive microfinance recovery agents.

Opposition voices like Kannada activist Vatal Nagaraj have criticized microfinancers, suspecting political ties and misuse of alleged black money. This action reflects the government's attempt to address these grave concerns within rural communities.

(With inputs from agencies.)