Bank takes NPA too seriously, gets notice from NHRC

Central Bank of India names girl and her father as defaulters over non-payment of education loan

GN Bureau | March 3, 2016


#NHRC   #Central Bank of India  


Unable to pay up her education loan, a girl in Tamil Nadu had to face serious embarrassment at the hands of a public sector bank which named the beneficiary and her father as defaulters. Taking cognizance of the matter, the National Human Rights Commission (NHRC) has issued a show cause notice to the chairman of Central Bank of India asking why it should not recommend monetary relief of Rs 1 lakh to the beneficiary for being insulted.

Apparently, the Manjoor branch of the bank in the Nilgiris district of Tamil Nadu displayed the girl as well as her father’s photographs captioning them wrongly as ‘missing’ and ‘defaulters’. Threatening telephonic calls were also made to her ailing father.

The commission’s show cause notice follows the admittance of error by the bank which has been given six weeks’ time to respond. In its report submitted to NHRC, the bank says that due to erroneous data entry in the system the victim’s loan account was wrongly classified as ‘non-performing asset’ (NPA). The bank’s move was against the advice of ministry of finance to all banks which says that names and photographs of students, who are unable to repay education loan or where there is a delay in the repayment, should not be published.

Justice D. Murugesan, member, NHRC, while issuing the show cause notice, observed that the display of photographs of the victim and her father on the notice board was a violation of their right to live with dignity, which is recognized as dereliction of article 21 of the constitution as well as human rights.

The victim had taken an education loan for Rs 2 lakh from the Manjoor branch of Central Bank of India to pursue her B.E. degree course. She completed the course in 2013 and according to the model IVA scheme, the first repayment had to commence from July, 2014 as per the moratorium. The moratorium included study period and a year after that to start the process of repaying the loan in 120 installments.  She had paid half of the loan amount in the first month itself after the moratorium. She said that the coercive methods adopted by the bank that too against the established norms of education loan repayment amounted to violation of human rights. It is also alleged that her ailing father had died due to shock after receiving threatening telephone calls from the bank.
 

Comments

 

Other News

Food security: Solution lies in traditional food

After spending almost a month among tribals of Mandla in Madhya Pradesh, I can confidently say that by restricting ourselves to Public Distribution System (PDS), we cannot solve the food security issues of the country.   The problem is graver. In a district like Mandla, where aboriginals like Bai

Wholesale price index inflation down

The annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 2.60% (provisional) for the month of September, 2017 (over September,2016) as compared to 3.24% (provisional) for the previous month and 1.36% during the corresponding month of the previous year, authorities said.

Digital India to provide 20-30% increase in India’s GDP by 2025: Alphons

Digital India program has the potential to provide an incremental 20-30 percent increase in India’s GDP by 2025. Since its launch in July 2015, significant progress has been made in several initiatives under Digital India, said union minister KJ Alphons. Several of the flagship project

Senior railway officer Achal Khare on the bullet train roadmap

Achal Khare, MD, National High Speed Rail Corporation, is a man with big responsibility – of realising India’s dream of running a bullet train. In conversation with Vishwas Dass, Khare lists various challenges before the NHSRCL – the executing agency of the Ahmedabad-Mumbai high speed

Why bullet trains are unsuitable for India

Many will be surprised to know that 80 years ago, trains ran at a faster speed in North America and Western Europe than in India today. On the shorter distances (up to 500 km), daytime inter-city trains achieved average speed of 120 to 130 kmph, and on the longer routes (more than 1,000 km) speed was only

Biting the bullet train

If all goes well, India’s first high-speed train would zip by in  December 2023. In fact, railways minister Piyush Goyal is even confident that the 508-km Ahmedabad-Mumbai high-speed rail (HSR) project would be completed much before that, by August 2022 – on the country’s 75th indepe



Video

Finally Talwar’s out from Dasna  jail

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter