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Coercive Loan Recovery Will Invite Fine, Jail Term, DC Warns Microfinance Firms
The New Indian Express Kalaburagi
|February 20, 2025
Campaigns will be organised at dist, hobli, taluk levels to make public aware of the ordinance
"In order to prevent microfinance staff from harassing the poor over debt recovery, the state government has promulgated the Karnataka Micro Credit and Small Loans (Prevention of Coercive Measures) Ordinance-2025 which came into force on February 12. Anybody who harasses the public and recovers loans by violating this ordinance will be liable to pay a fine of Rs 5 lakh and get 10 years of imprisonment," Deputy Commissioner Fouzia Taranum warned representatives of microfinance firms on Wednesday.
Presiding over a meeting with the representatives of the microfinance institutions, lending agencies and moneylenders operating in Kalaburagi district here regarding implementation of the ordinance, she said that the ordinance would be strictly followed and no excuses would be heard.
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