Bengaluru, Feb. 11 -- The Karnataka government on Monday once again submitted the microfinance ordinance to Governor Thaawarchand Gehlot, after addressing concerns raised by him earlier. The ordinance, which seeks to curb aggressive loan recovery practices, was initially sent back by the governor with multiple objections. However, the government has reiterated the necessity of the law without making modifications to its provisions.

"A comprehensive explanation regarding the microfinance ordinance has been sent back to the governor as per his request," stated the chief minister's office (CMO).

The Karnataka Microfinance (Prevention of Coercive Actions) Ordinance 2025 includes strict penal provisions, including a jail term of up to 10 yea...