Bengaluru: Karnataka Home Minister Dr. G. Parameshwara has announced that the state government will present a bill on microfinance regulation in the upcoming assembly session instead of issuing an ordinance. This decision comes after Governor Thaawarchand Gehlot sought clarification on the previously proposed ordinance.

The state government had initially planned to implement an ordinance to curb rising cases of suicide due to microfinance-related harassment. However, following objections from the Governor, the government has decided to introduce a bill in the assembly for approval.

Speaking to reporters in Bengaluru on Saturday, Home Minister Parameshwara stated, "The Governor has not rejected the ordinance but has sought clarification. We will provide the necessary explanations in the assembly. The government has taken strict legal measures to prevent violations, and penalties will not exceed ₹5 lakh for those taking loans up to ₹1 lakh."

Meanwhile, Cooperation Minister K.N. Rajanna confirmed that the government has resubmitted the ordinance file to the Governor with necessary clarifications. He emphasized that the government does not intend to regulate legally registered microfinance institutions but will take strict action against entities involved in illegal money lending and excessive interest rates under anti-money laundering laws.

Rajanna also highlighted that reduced agricultural loan availability has forced farmers to rely on private financiers, worsening their financial burden. He reaffirmed that the Congress-led government in Karnataka is committed to addressing these issues effectively.