Amendment status not verified — confirm the current text below against the official source.
The provisions of this Act shall not be applicable to legal, registered and regulated bodies like Banks (including Small Finance Banks, Local Area Banks, Regional Rural Banks and Business Correspondents of Banks)regulated by RBI, all Co-operative Banks and all Co-operative Societies registered under the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959 ) and all Souharda Societies registered under the Karnataka Souharda Sahakari Act, 1997 (Karnataka Act 17 of 2000) and all Non-Banking Financial Companies and Housing Finance Corporations, registered with RBI. The proposed Legislation is a necessary and legally sound intervention to address financial exploitation and does not violate any fundamental rights but rather strengthens protections for vulnerable borrowers. The principles of social justice, economic fairness, and the protection of life and dignity justify the need for immediate enforcement. As the matter was urgent and both the Houses of the State Legislature were not in session, the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025 (Karnataka Ordinance No. 02 of 2025) was promulgated to achieve the above object. This Bill seeks to replace the above ordinance. Hence, the Bill. [L.A. Bill No. 06 of 2025, File No. SAMVYASHAE 03 SHASANA 2025] [Entry 30 of List II and entries 20 and 23 of List III of the Seventh Schedule to the Constitution of India.] [Published in Karnataka Gazette Extra-ordinary No.188 in part-IVA dated:25.03.2025] KARNATAKA ACT NO. 15 OF 2025 (First Published in the Karnataka Gazette Extra-ordinary on the 25th day of March, 2025) THE KARNATAKA MICRO LOAN AND SMALL LOAN (PREVENTION OF COERCIVE ACTIONS) ACT, 2025 (Received the assent of the Governor on the 24th day of March, 2025) An Act to protect and relieve the economically vulnerable groups and individuals, especially farmers, women and women’s self help groups from the undue hardship of usurious interest rates and coercive means of recovery by Micro Finance Institutions or Money Lending Agencies or Organizations operating in the state of Karnataka and for matters connected therewith and incidental thereto.