Karnataka govt tables Microfinance Bill in Legislative Assembly. Bill is aimed at protecting borrowers from harassment by microfinance institutions. penal provisions include a jail term up to 10 years and fines of Rs five lakh for violations. The bill seeks to replace The Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance that was promulgated on February 12. The government had decided on promulgating the ordinance, in response to a spate of suicides and multiple complaints from various parts of the state against predatory loan recovery methods bymicrofinance firms. It proposes for the government appointment of an ombudsman to act as a mediator between the borrower or lender to settle loan disputes, and it also provides police officers not below the rank of Deputy Superintendents of Police powers to file cases suo-motu. As per section 15 of the bill: every loan advanced before the commencement of this section including the amount of interest, if any payable by the borrower to MFIs or money lending agencies or organisations or lenders shall be deemed to be wholly discharged of \”vulnerable sections of the society\” if unregistered and unlicensed MFIs resort to coercive action. Vulnerable sections means farmers, women, agricultural labourers, footpath vendors, dairy workers, migrant workers and \”people who are disadvantaged\”