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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Three arrested in stone-pelting incident in Chikkamagaluru
Chikkamagaluru: Police have arrested three persons in connection with a recent stone-pelting incident at a house in the city’s Vijayapura locality and the violence that followed.
The arrested persons have been identified as Bharat (23) of Gauri kaluve, Dilip (27) of Ramanahalli, and Harish, the owner of the motorcycle allegedly used in the incident.
According to police, the accused had been moving around near the complainant’s house on motorcycles for three days prior to the incident. The investigation has also revealed that there had been an earlier argument between the accused and the complainant.
Police said further inquiry is under way to determine the exact motive behind the stone-pelting and whether others were involved.
