BENGALURU: Private rural schools in the state have written to the Prime Minister with a list of demands which include waiving interest on term loans charged during the pandemic period, postponement of EMIs, restructuring working capital limits and providing further financial support to the managements of unaided schools in Karnataka. They have sought his intervention to give clear instructions to the State Government to help unaided schools and consider their request.
Lokesh Talikatte, president of RUPSA Karnataka, said that while the Reserve Bank of India has announced a Resolution Framework-2.0 on Covid-19 related stress for individuals and small businesses, banks and financial institutions are reluctant to implement the RBI instructions.
“They have not framed the Board Approved Policies nor even publicised the implementation of the resolution, as directed by the RBI, in the Invocation of Resolution Process (7),” he said, adding that as a reason for school managements to be under financial stress.
Lokesh said that a majority of the 20,900 member private unaided schools in Karnataka are budget schools, easily accessible to the poor and middle class parents. “Due to the Covid pandemic and inconsistent decisions of the Education Department, we have suffered huge financial losses. Though we have respected and accepted a 30 pc cut in fees, parents have not come forward to pay up and thus, we are in financial crisis. We are finding it extremely difficult to meet expenditures,” he said.