Wed Jan 29 16:04:54 UTC 2025: ## Karnataka Govt to Curb Microfinance Harassment with New Bill
**Bengaluru, January 29, 2025** – The Karnataka government is fast-tracking a bill to curb the alleged harassment of borrowers by microfinance institutions (MFIs). Home Minister G. Parameshwara and Law and Parliamentary Affairs Minister H.K. Patil met Wednesday to finalize the “Karnataka Micro Finance Prevention of Coercive and Inhuman Action Bill, 2025.”
The move follows concerns over aggressive debt recovery practices by MFIs. Minister Parameshwara stated that Chief Minister Siddaramaiah has directed the immediate introduction of the bill, citing the urgency to stop borrower harassment. He emphasized that the government isn’t aiming to restrict MFIs’ financial operations or loan amounts, but rather to address coercive recovery methods.
Police have been instructed to file complaints against MFIs engaging in such practices. The government also plans to launch awareness campaigns on responsible borrowing and lending. The bill is expected to be introduced before the Budget session.
First Piper 