Finance Minister instruction to bank,

Last Updated on August 18, 2023 by Brajesh

Finance Minister instruction to bank

Union Finance Minister Nirmala Sitharaman has instructed


both public and private banks that harsh steps should not be taken when it comes to the process of loan repayment and that they should handle such cases with humanity and sensitivity.

Ms. Sitharaman said this while making an intervention during the Question Hour in the Lok Sabha on a question related to repayment of loans taken by small borrowers.

Finance Minister instructed banks both Public and Private sector bank not to take any harsh steps against non payment of loan taken by customers, they need to deal the situation with sensitivity and humanity,; Said FM.

During question hour in Lok Sabha Finance Minister intervene Department OF Financial Secretary Mr. Bhagwat Karad and said that she has received lots of complaints of customer harassments in recent past, and they should avoid doing this to small borrowers

“I have heard complaints about how mercilessly loan repayments have been followed up by some banks. The government has instructed all banks, both public and private, that harsh steps should not be taken when it comes to the process of loan repayment, and they should approach the matter with humanity and sensitivity in mind,” she said.

This is not the first time this type of case has been notice, Reserve Bank of India had also warned vide circular in 2008 , where it was said that if they receives lots of complaints regarding agent appointment and harassments then they should consider imposing ban on bank from engaging recovery agents.

Several cooperative banks were also handled penalties for contravention of its different norms during examination in relation to recovery agents and process of recoveries.

The Madras High Court had last month observed If banks have to recover outstanding loan amount, the same has to be recovered in accordance with the procedure established by law.

FM in Lok Sabha

All banks instructed not to take harsh steps to recover loans: FM Sitharaman tells Lok Sabha

 

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