Bengaluru, Feb 2 (PTI) – The Karnataka government is actively working on a draft bill aimed at safeguarding borrowers from the coercive practices of microfinance companies, Home Minister G. Parameshwara announced on Sunday.
Speaking to reporters in Bengaluru, Parameshwara emphasized that the proposed legislation is undergoing thorough scrutiny to ensure it withstands legal challenges. "We are making necessary additions and deletions to align the bill within the framework of the law. Once finalized, it should not face legal hurdles or risk being stayed by the court," he stated.
Chief Minister Siddaramaiah has instructed officials to integrate existing money-lending laws into the new draft to strengthen its legal standing. "The Chief Minister directed officials on Thursday to prepare the bill within three days. Once ready, it will be forwarded for the Governor’s assent," Parameshwara added.
The urgency behind the bill stems from increasing reports of borrower distress, including suicides, physical harassment, asset confiscation, and families being forced to flee their homes due to aggressive loan recovery tactics by microfinance firms. In response, Siddaramaiah has taken decisive steps to frame a legal safeguard that will curb these exploitative practices.
With mounting concerns over predatory lending, the Karnataka government’s move signals a strong stance against financial misconduct in the microfinance sector. The upcoming bill aims to bring relief to thousands of vulnerable borrowers across the state.
(With inputs from PTI)
Speaking to reporters in Bengaluru, Parameshwara emphasized that the proposed legislation is undergoing thorough scrutiny to ensure it withstands legal challenges. "We are making necessary additions and deletions to align the bill within the framework of the law. Once finalized, it should not face legal hurdles or risk being stayed by the court," he stated.
Chief Minister Siddaramaiah has instructed officials to integrate existing money-lending laws into the new draft to strengthen its legal standing. "The Chief Minister directed officials on Thursday to prepare the bill within three days. Once ready, it will be forwarded for the Governor’s assent," Parameshwara added.
The urgency behind the bill stems from increasing reports of borrower distress, including suicides, physical harassment, asset confiscation, and families being forced to flee their homes due to aggressive loan recovery tactics by microfinance firms. In response, Siddaramaiah has taken decisive steps to frame a legal safeguard that will curb these exploitative practices.
With mounting concerns over predatory lending, the Karnataka government’s move signals a strong stance against financial misconduct in the microfinance sector. The upcoming bill aims to bring relief to thousands of vulnerable borrowers across the state.
(With inputs from PTI)
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