Karnataka Drafts New Law Against Exploitative Microfinance Practices

The Karnataka government is preparing a new law to address public anger over exploitative microfinance companies. Minister H K Patil announced an urgent meeting to discuss the Karnataka Micro-Institution of Money Lending Bill. Public frustration arises from suicides and protests due to the government's inaction.

The Karnataka government is taking steps to address public outcry over predatory microfinance companies. Minister H K Patil revealed on Friday that the administration is in the process of drafting a new law aimed at curbing exploitative practices.

Chief Minister Siddaramaiah has scheduled a crucial meeting to be held on Saturday to examine the issue in detail. According to the Karnataka Law and Parliamentary Affairs Minister, an urgent legislative intervention is seen as necessary to safeguard public interests.

The move comes in response to numerous incidents of suicides, displacements, and protests across Karnataka, as citizens criticize the government's previous lack of action against oppressive financial practices by microfinance institutions.

(With inputs from agencies.)