Customers protest against Kerala Gramin Bank for deducting Loan EMIs from Relief Fund provided by Govt
In a distressing turn of events, Customers of Kerala Gramin Bank are protesting against the bank for deducting loan EMIs from the emergency relief funds distributed by the state government to survivors of the devastating Wayanad landslides on July 30. This disaster claimed over 230 lives and left more than 100 people missing, leaving the survivors grappling with immense loss and hardship.
The state government had announced an emergency assistance of Rs 10,000 per victim to help them recover from the disaster. However, many survivors were shocked to find that their relief funds were partially or fully deducted by the bank to cover outstanding loan payments.
Kerala Gramin Bank ownership structure: The Centre holds a majority stake (50% directly and an additional 35% through PSU Canara Bank), and the Kerala government owns a 15% stake. The bank’s decision has been described as “cruel” by state cooperatives minister VN Vasavan. He criticized the bank for not taking a more compassionate approach, especially given the dire circumstances of the survivors.
One survivor, Mini Mol, who had taken a loan of Rs 50,000 for constructing a house, found that Rs 3,000 was deducted from her relief amount. Another victim, Rajesh from Chooralmala, lost his home and cattle shed in the landslide. The bank deducted Rs 3,400 from his relief funds, which he had hoped to use for securing a rental house as he rebuilds his life.
Minister Vasavan has promised to address this issue. He emphasized that while the state-level bankers’ committee (SLBC) may not have issued a formal directive regarding the handling of relief funds, the bank branch manager should have taken a humanitarian approach. He assured that the matter would be raised with the SLBC to prevent such incidents in the future.
In response to the growing outrage, KS Pradeep, the general manager of SLBC, reached out to the chief of Gramin Bank. The chief explained that the deductions were made due to standing instructions in the accounts set up before the disaster occurred.
In a move to address the issue, the Wayanad deputy collector, who is also the acting CEO of the district disaster management authority, has issued directives for Kerala Gramin Bank to return the deducted amounts to the survivors. This step aims to alleviate some of the immediate financial strain on those affected by the landslides.
