THIRUVANANTHAPURAM: Giving a breather to people ravaged by floods, the State-Level Bankers’ Committee (SLBC) has decided to put on hold proceedings to recover loans by three months. While announcing a one-year moratorium for crop loans, the committee also declared a relaxation of six months for repayment of educational loans. “Member banks have been asked to provide additional loans to people in flood-hit areas without insisting on collateral security and margin,” said SLBC chairperson P V Bharathi.
She said here on Wednesday, in the case of those who have lost documents accepted as ID proof, SLBC has decided to simplify the Know Your Customer (KYC) rules and provide them with the opportunity to open Basic Savings Bank Deposit Account. At the same time, SLBC convener G K Maya said member banks were directed not to levy any kind of charge while issuing new passbooks, account statements and the like to those who have lost their KYC documents during the floods. Customers can avail this facility till October 31. She said member banks can individually decide on foregoing ATM charges, late fee and other charges on loans.
On Monday, a special meeting of SLBC — a consortium of public and private banks, regional rural banks and cooperative banks — was held to discuss activities to be undertaken by financial institutions in flood-hit areas.As people in flood-hit areas are engaged in a cleaning spree, the SLBC had a word of caution for them. According to the committee, if one has to avail the insurance claim for houses and vehicles, then they should have to be ‘kept as it is’ until surveyors assess the damage. The SLBC has already instructed member banks to direct their branch managers to inform the customers.