Karnataka's Crackdown on Microfinance Misconduct

Karnataka is taking action against alleged misconduct by microfinance companies. The state government, led by Home Minister G Parameshwara, is drafting an ordinance to protect borrowers, enhancing powers of local authorities. Discussions are ongoing, with cabinet approval expected soon and a helpline for borrowers being established.

In a decisive move to curb misconduct by microfinance companies, Karnataka's government is on the brink of finalizing a draft ordinance aimed at safeguarding the interests of borrowers. The announcement was made by Home Minister G Parameshwara, who emphasized that the draft will soon be presented to the state cabinet for approval.

A high-level meeting, including Law and Parliamentary Affairs Minister H K Patil and Revenue Minister Krishna Byre Gowda, was convened to discuss the draft. Parameshwara indicated immediate measures to counter the aggressive money recovery tactics employed by microfinance companies, including empowering district authorities and providing a helpline for affected borrowers.

Chief Minister Siddaramaiah has already expressed concern over multiple cases of borrower harassment, spurring rapid government response. With seven cases logged, the urgency for legislative intervention is evident. Discussions also touched upon infrastructure developments like a potential second international airport near Tumakuru.

(With inputs from agencies.)