Bengaluru, Feb. 13 -- Karnataka Governor Thaawarchand Gehlot has approved the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025, after receiving clarifications from the State Government.

The Ordinance, aimed at regulating microfinance operations and preventing coercive loan recovery practices, was signed on Wednesday.

The Chief Minister's Office (CMO) confirmed the development, stating that the Government submitted the Ordinance along with the explanations sought by the Governor.

The Ordinance was initially returned by the Governor on Feb. 7, due to concerns about its impact on legal loan recovery processes. He noted that while it seeks to waive loans and interest imposed by unlicensed and unregistere...