<p>Bengaluru: Reiterating the government’s commitment to prevent microfinance institutions (MFI) from harassing borrowers, Home Minister G Parameshwara said Friday that a one-time settlement (OTS) option is being considered to reduce their loan. </p>.<p>Speaking to reporters, Parameshwara noted that microfinance companies have outstanding loans of Rs 59,000 crore. If the government decides to provide the OTS, it will be in addition to the ordinance being planned, he said. </p>.<p>He said the ordinance would be fine-tuned and be ready in two or three days, the home minister said: “There are many laws already under the Police and Cooperation Departments. The chief minister has instructed (the officials) to see how they can be linked with this new law. Probably it may happen by this evening or be finalised in two or three days.”</p>.<p class="bodytext">He, however, refrained from fixing a date for promulgating the ordinance.</p>.<p class="bodytext">The home minister pointed out that registered MFIs have to abide by the RBI guidelines while there’s no regulation currently for the unregistered MFIs. </p>.<p class="bodytext">Parameshwara explained the phenomenon through a case in his constituency Koratagere in the Tumakuru district.</p>.<p class="bodytext">“A man took a loan of Rs 2.5 lakh from a company but ended up paying back Rs 4.5 lakh. Despite that, he was directed to pay another Rs 80,000. The house was locked and the residents left the town. When I got to know, I sensitised the DC and SP, sent them there, got an FIR lodged on those responsible for this, arrested them and those who left the house returned. Now I am going (there) to see that,” he said. </p>.Meeting to finalise draft ordinance on microfinancing firms, says Karnataka Home Minister G Parameshwara.<p class="bodytext">Conceding that the MFIs would now approach the courts against the ordinance, Parameshwara said they need a law where the MFIs cannot go to the courts easily.</p>.<p class="bodytext">As of Friday evening, the officers entrusted with fine-tuning the ordinance were still working on the issue. </p>
<p>Bengaluru: Reiterating the government’s commitment to prevent microfinance institutions (MFI) from harassing borrowers, Home Minister G Parameshwara said Friday that a one-time settlement (OTS) option is being considered to reduce their loan. </p>.<p>Speaking to reporters, Parameshwara noted that microfinance companies have outstanding loans of Rs 59,000 crore. If the government decides to provide the OTS, it will be in addition to the ordinance being planned, he said. </p>.<p>He said the ordinance would be fine-tuned and be ready in two or three days, the home minister said: “There are many laws already under the Police and Cooperation Departments. The chief minister has instructed (the officials) to see how they can be linked with this new law. Probably it may happen by this evening or be finalised in two or three days.”</p>.<p class="bodytext">He, however, refrained from fixing a date for promulgating the ordinance.</p>.<p class="bodytext">The home minister pointed out that registered MFIs have to abide by the RBI guidelines while there’s no regulation currently for the unregistered MFIs. </p>.<p class="bodytext">Parameshwara explained the phenomenon through a case in his constituency Koratagere in the Tumakuru district.</p>.<p class="bodytext">“A man took a loan of Rs 2.5 lakh from a company but ended up paying back Rs 4.5 lakh. Despite that, he was directed to pay another Rs 80,000. The house was locked and the residents left the town. When I got to know, I sensitised the DC and SP, sent them there, got an FIR lodged on those responsible for this, arrested them and those who left the house returned. Now I am going (there) to see that,” he said. </p>.Meeting to finalise draft ordinance on microfinancing firms, says Karnataka Home Minister G Parameshwara.<p class="bodytext">Conceding that the MFIs would now approach the courts against the ordinance, Parameshwara said they need a law where the MFIs cannot go to the courts easily.</p>.<p class="bodytext">As of Friday evening, the officers entrusted with fine-tuning the ordinance were still working on the issue. </p>