💨 Abstract

Karnataka's Governor has returned an ordinance meant to protect borrowers from microfinance institution harassment, citing regulatory excesses. The ordinance includes penal provisions for violation, such as a ten-year jail term and a fine of up to Rs 5 lakh. The Governor has suggested that the state should consider existing laws instead of the new ordinance, as the proposed fine is disproportionate to the maximum loan amount of Rs 3 lakh.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖