In a meeting held on Monday, Ballari Deputy Commissioner Prashant Kumar Mishra, along with District Superintendent of Police Dr. Shobharani V.J. and Zilla Panchayat CEO Rahul Sharanappa Sankanur, issued a stern warning to microfinance companies in the district, emphasizing the importance of strict adherence to the Reserve Bank of India (RBI) guidelines. The DC stressed that any form of mental torture, insult, or humiliation in the name of loan recovery would result in immediate action.
Additionally, Dr. Shobharani emphasized that debt collection calls and house visits should not be made before 9 am or after 6 pm. She warned that any form of defamation or harassment would lead to immediate legal action. The public was also encouraged to report such cases by calling the helpline number 9480803000.
He also highlighted the rules on loan sanction and recovery, the prohibition of illegal practices, and the need for transparency by ensuring that no middlemen are involved in the process. Borrowers must receive clear guidelines regarding the loan terms, amount, tenure, interest rate, and repayment period.
During the meeting, DC Mishra reiterated that no harassment cases have been reported in the district so far. He urged financial institutions to maintain good relationships with the public and avoid any situations that could lead to harassment. He also reminded attendees about the Chief Minister and Revenue Minister’s previous meeting regarding suicides linked to microfinance companies in the state, and that an ordinance addressing these issues would be enforced soon.
Dr. Shobharani V.J., District Superintendent of Police, informed the meeting that 118 microfinance companies are operating in the district, but only 27 are officially registered with the RBI. She instructed that all microfinance institutions should submit their details to either the District Collector’s office or the Superintendent of Police’s office, and their officers and staff must get their documents verified to ensure proper and transparent recovery processes.
The Deputy Commissioner further stated that no pressure should be placed on borrowers during the loan recovery process, and they must be fully informed of all loan terms. He also stated that individuals with criminal backgrounds should not be employed for debt recovery purposes.
The meeting was attended by Zilla Panchayat Chief Operating Officer Rahul Sharanappa Sankanur, Sub Divisional Officer P. Pramod, Additional Superintendent of Police Naveen Kumar, Deputy Director of Women and Child Development Department Vijay Kumar, Lead Bank Manager Girish V., and representatives from various microfinance companies, including Kulkarni.