CM Siddaramaiah directs DCs, SPs to implement Microfinance ordinance

Bengaluru: Chief Minister Siddaramaiah on Saturday directed the deputy commissioners and superintendents of police of all districts to effectively implement the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025.

The statement released by the CM’s office after Siddaramaiah’s interaction with the officials via video conference, elaborated on the primary objective that compelled the notification of the ordinance. Citing instances of borrowers being harassed by goons and anti-social elements employed by the money lenders, the CM called on the officials to protect the public from such microfinance
institutions.

“DCs and SPs must evolve a mechanism to keep a regular check on microfinance institutions that are operating without authorisation from the Reserve Bank of India, and ensure that even those who have obtained RBI’s permission are operating within the central bank’s guidelines,” said the CM. He added that the respective DC and SP would be held accountable if instances of harassment of borrowers are reported in their
district.

“The DCs and SPs must mandatorily set up round-the-clock call centres to receive complaints from victims of harassment,” the statement read. 

According to the statement, the CM said that the ordinance was not meant to harass anyone or any institution but to prevent harassment by any financial institution through illegal means.