Karnataka: MFI Ordinance proposes 10-year jail for coercive recovery of loans

The proposed micro-finance ordinance aims to impose hefty fines and lengthy jail terms on micro-finance institution executives who use coercive tactics for loan recovery. The ordinance is awaiting the governor's assent, and the government is fine-tuning it to withstand legal scrutiny, addressing the urgent need to curb borrower harassment and suicides.