Karnataka Governor Thawar Chand Gehlot signed the ordinance regarding the microfinance rules that the Karnataka government recently decided on at a Cabinet meeting, the chief minister’s office said Wednesday. Karnataka CM Siddaramaiah wrote on X, “An ordinance designed to prevent harassment of borrowers by microfinance companies under the pretext of debt collection has received the Governor’s signature. This law, which will come into effect soon, will protect people against illegal loan collection and harassment by microfinance institutions. Don’t let anyone take any hasty decision out of fear of harassment from microfinance. Our government is with you.”
Karnataka CM Siddaramaiah tweets, "An ordinance designed to prevent harassment of borrowers by microfinance companies under the pretext of debt collection has received the Governor's signature. This law, which will come into effect soon, will protect people against illegal loan… pic.twitter.com/I4C3rBDVcF
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Earlier, the Governor had sent back the ordinance, saying that some important issues needed to be addressed. The chief minister’s office today said that the Karnataka government addressed those issues that were raised by Raj Bhavan.
“Today, the Governor of Karnataka signed the ordinance to curb the microphone-related issues in Karnataka,” the CMO said.
Several families in Karnataka were allegedly abused by the microfinance companies in Karnataka. Those families had complained that microfinance company representatives were harassing them in the name of repayment.
Against that backdrop, the state government brought in the ordinance to safeguard the people.
