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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RCB beat MI by 18 runs after batters fire
Mumbai (PTI): Royal Challengers Bengaluru skipper Rajat Patidar, Phil Salt and Virat Kohli blasted half-centuries as the defending champions beat Mumbai Indians by 18 runs in an Indian Premier League match here on Sunday.
Salt (78 off 36 balls) and Kohli (50 off 38 balls) stitched together a 120-run stand for the opening wicket before Patidar scored a rapid 53 off just 20 balls as RCB posted 240 for 4.
In response, Mumbai Indians were restricted to 222 for 5, with RCB spinner Suyash Sharma (2/47) putting the skids on the home side with a double strike in the eighth over, from which they could not recover.
Sherfane Rutherford top-scored for MI with an unbeaten 71 off 31 balls.
While opener Rohit Sharma appeared to be struggling with a hamstring issue and had to retire hurt on 19, his partner Ryan Rickelton made 37, while Suryakumar Yadav (33) and Hardik Pandya (40) were the other contributors for MI.
Brief scores:
Royal Challengers Bengaluru 240 for 4 in 20 overs (Phil Salt 78, Virat Kohli 50, Rajat Patidar 53, Tim David 35 not out).
Mumbai Indians: 222 for 5 in 20 overs (Sherfane Rutherford 71 not out, Ryan Rickelton 37, Hardik Pandya 40; Suyash Sharma 2/47).
