Police issue guidelines for micro finance firms

BENGALURU: The police are preparing to take action against micro finance companies which harass borrowers and have issued new guidelines to rein them in. These guidelines were issued after a meeting attended by senior officials, including the Bengaluru Commissioner of Police and the Director General and Inspector General of Police.

Many borrowers are leaving their homes due to fear of loss of dignity, while some people have committed suicide. Therefore, senior officers have issued fresh guidelines to the jurisdictional police to take action against micro financiers in case of harassment.

The guidelines include:

Preventing microfinance companies from writing on the walls of borrowers’ homes.

Identifying homes with locked doors and taking action against those writing on walls.

Taking legal action against microfinance firms operating illegally.

Police should respond if people aggrieved by harassment from financiers visit the police station.

Compiling a list of companies violating RBI guidelines and taking necessary action.

Holding meetings with microfinance company heads to discuss these issues.

The state government has instructed the police to take legal action against micro finance companies which resort to recovery of loans against RBI norms. This comes after reports of harassment and illegal activities by these companies.