Law to Curb Harassment by Microfinance Firms Soon: CM

The new law will grant police more authority to take immediate action against coercive recovery tactics SIDDARAMAIAH, Chief minister

- HT Correspondent

BENGALURU: The state government will soon introduce a stringent law to curb harassment by microfinance institutions, chief minister Siddaramaiah said on Thursday.

Chairing a high-level meeting in Krishna, official residence of the chief minister, to address public grievances against microfinance firms, Siddaramaiah directed officials to strengthen legal provisions to protect borrowers from coercive recovery methods.

"It was decided that the (existing) ordinance we have issued to regulate microfinance institutions will be thoroughly reviewed, and a more robust law will be implemented at the earliest," he said. He added that a senior team from the law and finance departments would be constituted to ensure the law's swift enforcement.

The chief minister also emphasised that the law must be "completely constitutional and free of any loopholes." He pointed out that borrowers frequently face harassment from aggressive loan recovery agents, which necessitates urgent intervention.