Karnataka government plans online system for microfinance loans
Bengaluru: Microfinance companies may be asked to receive loan applications and disburse credit online, which is one of the aspects the government wants to include in a law whose draft has been finalised after multiple revisions.
The Karnataka Micro Finance (Prevention of Coercive Actions) Ordinance, revised at least eight times, was finalised on Saturday during a meeting with Law Minister HK Patil, Revenue Minister Krishna Byre Gowda, Chief Secretary Shalini Rajneesh, and other top officials, as reported by Deccan Herald.
Patil stated that the ordinance was finalised after authorities identified technical difficulties in the draft. He added that it would now be sent to Chief Minister Siddaramaiah.
Officials have been directed to include an online portal to track and update loan disbursement details, ensuring transparency and preventing over-lending to protect the poor from falling into debt cycles, the report mentioned.
An ombudsman, comprising the additional deputy commissioner and assistant commissioner in each district, will be appointed to oversee microfinance operations.
Notably, the government intends to prevent microfinance companies from taking assets or valuables as collateral for loans. The proposed law may also impose stringent restrictions on the use of intermediaries to harass borrowers who default on repayments.
Gowda mentioned that officials were asked to ensure that the interest rates are transparent and comply with Reserve Bank of India (RBI) regulations. “Officials have been instructed to incorporate these key aspects into the legal framework,” the revenue minster was quoted as saying by DH.
He further criticised the union government for turning a blind eye, as microfinance falls under its jurisdiction. “What’s the Centre doing? While the state government doesn’t have powers, we are still trying to protect people. It’s not a joke to prepare an ordinance in a week’s time,” he said.
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Drug peddler's property worth Rs 1 crore attached in Srinagar
Srinagar (PTI): Property worth Rs 1 crore belonging to a notorious drug peddler was on Saturday attached in Jammu and Kashmir's Srinagar, police said.
A double-storey house on eight marlas of land situated at Wantpora Eidgah, belonging to Basit Bilal Dar, a notorious drug peddler, valued at approximately Rs 1 crore, a police spokesperson said.
He said Dar is involved in two cases registered under various sections of the NDPS Act.
During investigation, it was established that the accused had acquired the said property through illicit proceeds generated from drug trafficking activities, the spokesperson said.
Consequently, the property was attached under the provisions of the NDPS Act. The attachment proceedings were conducted in the presence of the two independent witnesses, strictly in accordance with the prescribed legal procedures, he said.
As per the attachment order, the owner has been restrained from selling, leasing, transferring, altering, or creating any third-party interest in the property till further orders, the spokesperson added.
