Karnataka’s new Ordinance and the state of microfinance sector

Karnataka’s new Ordinance and the state of microfinance sector

On February 12, 2025 after days of deliberations, the Karnataka authorities promulgated an Ordinance to crack the whip on unregistered and unlicensed microfinance establishments (MFI) and moneylending companies within the State.
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The Hindu

On February 12, 2025 after days of deliberations, the Karnataka authorities promulgated an Ordinance to crack the whip on unregistered and unlicensed microfinance establishments (MFI) and moneylending companies within the State. The brand new laws goals to guard economically susceptible teams and people from exorbitant rates of interest and coercive technique of mortgage restoration.

Why did such an Ordinance grow to be mandatory? What are its key options? What are the considerations raised by microfinance establishments?

Learn full story right here.

Reporting: Nalme Nachiyar, Sharath Srivatsa

Video & Enhancing: Ravichandran N