Karnataka Government to Convene Meeting to Formulate Law Against Microfinance Harassment
Click to start listening
Synopsis
The Karnataka government is convening an urgent meeting to formulate a law addressing harassment from microfinance companies. Minister H.K. Patil emphasized the need for effective regulation as existing measures have proven inadequate. Criticism has arisen following incidents linked to microfinance exploitation, particularly affecting rural women.
Key Takeaways
- Karnataka government meeting on January 25.
- Focus on curbing microfinance harassment.
- Proposed legislation to protect citizens.
- Criticism over inaction on microfinance issues.
- Rural women significantly affected.
Bengaluru, Jan 24 (NationPress) The Karnataka government is preparing to convene an urgent meeting on Saturday to deliberate and establish a specific law intended to mitigate the harassment and exploitation inflicted by microfinance enterprises within the state.
Law and Parliamentary Affairs Minister H.K. Patil announced this at Vidhana Soudha in Bengaluru on Friday.
Minister Patil remarked, “The state government is taking the matter of harassment by microfinance firms with utmost seriousness. Chief Minister Siddaramaiah will conduct an urgent meeting on Saturday (January 25) to devise a special law aimed at addressing the exploitation faced by individuals due to these institutions.”
He underscored that the decision would prioritize the welfare of the public, particularly as the Reserve Bank of India (RBI) and other central bodies have failed to enforce laws effectively to combat the exploitation and distress experienced by common citizens at the grassroots.
“We are contemplating the introduction of the Karnataka Microfinance Institutions Regulation of Money Lending Bill to tackle these issues. This proposal will be presented to the Chief Minister, along with discussions on other pertinent matters. While the police possess authority in certain situations, there are occasions where they lack the requisite powers,”
Minister Patil elaborated.
He also expressed the view that the existing laws governing this matter are not sufficiently stringent.
The Congress administration in Karnataka has faced backlash following several suicides and harassment cases associated with microfinance firms in rural regions across the state.
Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy criticized the Karnataka government, stating, “On one side, the government professes to empower women by providing them Rs 2,000 under the Gruha Lakshmi scheme. Conversely, it has granted a free rein to microfinance companies, which are devastating their lives.”
“Rural women, particularly farmers and impoverished women, are the primary victims of microfinance companies. Numerous individuals are fleeing their homes and villages. Who bears the responsibility for this?”
Kumaraswamy further questioned, “The CM has summoned a meeting tomorrow. What actions will be taken during this meeting? How many lives have been lost? How many people have fled their homes and villages? What assistance will you extend to them?”
