Wed Jan 29 14:31:09 UTC 2025: **Chikkamagaluru Officials Warn Microfinance Institutions Against Loan Recovery Harassment**

CHIKKAMAGALURU, INDIA – January 29, 2025 – District officials in Chikkamagaluru, Karnataka, issued a stern warning to microfinance institutions (MFIs) on Wednesday, instructing them to cease harassing borrowers and adhere strictly to Reserve Bank of India (RBI) guidelines on loan recovery.

Deputy Commissioner Meena Nagaraj and Superintendent of Police Vikram Amathe addressed representatives from several MFIs, emphasizing the need for respectful customer treatment and customer-friendly transactions. They directed institutions to restructure loan repayments for borrowers facing financial hardship, thoroughly vet job applicants, and establish robust complaint redressal mechanisms.

Further directives included ceasing loan recovery attempts outside the hours of 9 a.m. to 6 p.m., providing receipts for all installments, and refraining from demanding repayment in cases of death or serious illness within the borrower’s family. The officials warned that MFIs engaging in harassment will face police action. The meeting underscored the administration’s commitment to protecting borrowers from unfair lending practices.

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