13th JUNE 2025 ENGLISH TNPSC CURRENT AFFAIRS PDF TNPSC SHOUTERS
Governor R.N. Ravi approves bill to impose 5-year jail term for forced debt collection
- In Tamil Nadu, individuals, self-help groups and joint liability groups were facing great hardship due to the forced debt collection practices of companies engaged in the business of providing loans to individuals.
- From this, a bill to protect the economically backward and weaker sections was passed in the last assembly session. Governor R. N. Ravi has approved this bill.
- According to this bill, anyone who goes to the home, residence, work or place of business of the borrower to negotiate or collect the loan, uses undue influence to force, uses the services of private or external agencies, forcibly demands the seizure of documents granting rights under government schemes, other important documents, goods, household belongings, etc., will be punished with imprisonment for 3 years or a fine of up to Rs. 5 lakh or both.
- It is noteworthy that if the borrower or any of his family members commits suicide or is forced to do so by the lending institution or agent, it is considered an offence under Section 108 of the Bharatiya Nyaya Sanhita Act. If a lending institution provides a loan without obtaining a registration certificate, it will be punishable by 3 years of imprisonment and a fine of Rs. 1 lakh.
