Karnataka Minister tells banks to be considerate during loan recovery

Santosh Lad, the Minister of Labor and Dharwad Region, asked banks to be thoughtful during the recovery of loans and take into account the real reasons for the delay in repayment.

The Minister, who chaired a review meeting at Dharwad on July 14, said that farmers, skilled workers and employees are default for inevitable reasons and should be given time for repayment. “Refund time should be given. People’s lives are more important than the credit recovery,” he said.

The Minister said that none of them should act inhuman during the credit recovery. Authorized, agricultural sciences, income and agricultural departments of authorities from the authorities, farmers’ suicide caused the causes and conditions to examine the bank officials and experts, he said. He said that the study will be performed scientifically with the help of agricultural experts.

Mr. LAD emphasized the need for appropriate sensitivity among farmers for the payment of loans, and banks should take into account the financial situation of borrowers and give them flexible repayment options in real cases.

Categorically, no bank has the authority to adjust any government aid, retirement, crop compensation, insurance request or subsidies against existing loans in NPA accounts of the NPA. “For technical reasons, this kind of amount is deposited in the credit account, it should be referred to the utilitarian to the savings account. I will raise it with the Prime Minister,” he said.

Deputy Commissioner Divya Prabhu Grj said that all banks have been warned against any government aid or compensation for farm loans. “An official proposal on this issue was already presented to the state bankers committee and the government by the Regional Administration,” he said.

Sometimes for technical reasons, state funds can be deposited in the credit accounts, but banks’ funds returned to the savings accounts of the beneficiaries, he said. The deputy commissioner said that the issue requires correction at the government level because the issue is widespread throughout the country.