<h1>Karnataka to Amend Microfinance Laws to Protect Borrowers from Harassment; Focus on Interest Rates and Recovery Practices.</h1> Karnataka Chief Minister announced plans to amend laws governing microfinance companies to safeguard borrowers' interests following public outrage over alleged harassment by these firms. In an emergency meeting with government officials and representatives from microfinance companies, the Chief Minister emphasized adherence to RBI guidelines during loan recovery and opposed outsourcing recovery efforts to prevent harassment. The proposed legislative changes aim to prevent excessive interest rates and unauthorized recovery practices, particularly in rural areas where incidents of harassment have led to severe consequences, including suicides and protests. The government intends to enforce strict actions against rule violations.