Govt grateful to guv for approving microfinance ordinance: H K Patil

Bengaluru: Karnataka Minister for Law and Parliamentary Affairs H K Patil was effusive in expressing his gratitude to Governor Thaawarchand Gehlot for giving his assent to the state government’s ordinance to check harassment by microfinanciers – the Karnataka Micro Loan and Small loan (Prevention of Coercive Actions) Ordinance, 2025.

The provisions of the ordinance, which became the subject of much debate after the Governor sent it back to the government seeking clarification the first, came into effect on Wednesday.

Patil, who called on Gehlot on Thursday, said, “This ordinance will provide much-needed respite to the public who sometimes become victims of illegal money-lending institutions. That is why this ordinance was necessary.”

Patil said that the Governor and he had a ‘healthy exchange’ on the ordinance, while adding that he did not discuss other bills still awaiting Gehlot’s nod.

Seeking to allay any fears that Non-Banking Financial Corporations (NBFCs) and even banks may have, the minister said, “The Governor has asked us not to use provisions of the ordinance to harass NBFCs registered either with the Reserve Bank of India, or banks in the state. We assured him that his concerns were considered in a positive light, besides affirming that the ordinance would not be used against legitimate financial institutions.”