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NRIPage | Articles | Karnataka to Finalize Ordinance to Protect Borrowers from Microfinance Companies | Get Animation Tools. Unleash Your Imagination around the world - NRI Page
Karnataka’s Home Minister G Parameshwara has confirmed that a meeting will be held on Wednesday to finalize the draft ordinance designed to protect borrowers from microfinance companies operating in the state. Once the draft is ready, it will be presented to the cabinet on Thursday and sent for approval to Governor Thaawarchand Gehlot.
The ordinance aims to curb the menace caused by microfinance companies, which have been allegedly using aggressive and unethical methods to recover loans from borrowers. Parameshwara mentioned that instructions have been issued to Deputy Commissioners and Superintendent of Police in all districts to take action against these companies. The draft ordinance will also propose the formation of a special wing and provide more authority to district officials.
A helpline for borrowers will be established to address their grievances. Parameshwara condemned the actions of outsourced recovery firms, who allegedly behave like "rowdies" and said that strict actions would be taken against them.
In addition to the ordinance discussion, the minister expressed his desire for a second international airport in Bengaluru, preferably in his home district near Tumakuru, which would help travelers from North Karnataka.
The issue of microfinance companies came to light after a series of alleged abuses. Karnataka's Chief Minister Siddaramaiah held an urgent meeting earlier this week, where microfinance companies were warned to stop harassing borrowers. Seven cases have already been filed against these companies in the state.
