Kerala floods: State-level bankers committee decides to hold loan recovery proceedings

THIRUVANANTHAPURAM:  Giving a breather to people who were ravaged by floods, the State Level Bankers' Committee (SLBC) has decided to put on hold the proceedings for recovering loans by three months. While announcing one-year moratorium for crop loans, the committee also declares a relaxation of six months for repayment of educational loans.

"The member banks have been asked to provide additional loans to people of flood-hit areas without insisting on collateral security and margin," said PV Bharathi, chairperson of SLBC, who is also the executive director of Canara Bank.

Attending a press meet, here on Wednesday, the chairperson said that in the case of those who lose their documents which were accepted as ID proof during the floods, the 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, GK Maya, convener of SLBC said that the member banks were directed not to levy any kind of charge while issuing new passbooks, account statement and others to those who lose their KYC documents during the floods. The customers could avail this facility till October 31st. She also adds that the member banks could make individual calls on foregoing ATM charges, late fee and other charges on loans

It was on Monday that a special meeting of the SLBC, a consortium of public and private banks, regional rural banks and cooperative banks, was convened to discuss the activities to be undertaken by financial institutions at flood-hit areas. According to SLBC, the decisions that have been taken during the meeting is binding to those areas that have been declared flood-hit by the state government. With complaints regarding representatives of private banks visiting flood relief camps and pressurizing the people to repay the loans, the Chief Minister, the other day had asked them to refrain from the same.