Sun Feb 09 16:30:24 UTC 2025: ## Karnataka Congress Accuses BJP of Influencing Governor’s Rejection of Microfinance Ordinance
**Bengaluru, February 9, 2025** – Congress leaders in Karnataka have strongly criticized Governor Thaawarchand Gehlot for returning an ordinance aimed at regulating microfinance institutions (MFIs). They accuse the BJP of exerting pressure on the Governor to block the legislation, which was designed to protect vulnerable borrowers from exploitative lending practices.
The ordinance, drafted in accordance with Reserve Bank of India guidelines, sought to curb high-interest rates and prevent harsh recovery methods employed by some MFIs. H.M. Revanna, chairman of the Guarantees’ Implementation Committee, stated that the public is dissatisfied with the current situation and the Governor’s decision is detrimental.
Governor Gehlot, however, returned the ordinance citing concerns over excessive regulatory provisions and penalties. He requested the government introduce a bill during the upcoming Budget session for legislative discussion. Home Minister G. Parameshwara indicated the government would address the Governor’s concerns.
Former MP and KPCC vice-president V.S. Ugrappa alleged that the BJP’s intervention was motivated by a desire to prevent the Congress government from gaining political credit for the protective measures.
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