India, Feb. 10 -- The Karnataka government is revising the Karnataka Micro Finance (Prevention of Coercive Actions) Ordinance, 2025, after Governor Thaawarchand Gehlot returned it with concerns, officials aware of the matter said on Sunday.

The ordinance, which aims to curb illegal loan recovery practices by microfinance institutions (MFIs), proposes penalties, including up to 10 years of imprisonment and fines to the tune of Rs.5 lakh for violations.

The government is now addressing the Governor's observations before resubmitting the ordinance, they added.

Governor Gehlot raised concerns over the severity of the punishments outlined in the draft, stating that the proposed penalties are disproportionate compared to similar provisions u...