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  

Arun Kumar

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and photographs of students, who are unable to repay education loan or where there is a delay in the repayment, should not be published.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

Railways suffered over Rs 33,000 crore loss on passenger service: CAG

  The Railways was unable to meet its operational cost of passenger and other coaching services. During 2014-15, there was a loss of Rs 33,821.70 crore on passenger and other coaching services. The freight services earned a profit of Rs 38,312.59 crore which indicated that 88.28 percent

“Return land to tribals after mining is over”

Seasoned BJP parliamentarian Nand Kumar Sai, who took charge as the chairperson of the National Commission for Scheduled Tribes (NCST) on February 28, has his work cut out for him. Archana Mishra caught up with Sai, 71, on his first day in office where he

Should there be automatic termination as member of parliament if that person takes oath as minister/chief minister in a state?

Should there be automatic termination as member of parliament if that person takes oath as minister/chief minister in a state?

Ganga, Modi and people’s unwavering faith

When the truth was a few steps away from Modi’s gaze In November 2014, prime minister Narendra Modi made his first visit to his constituency Varanasi and launched a massive cleanliness drive at Asi ghat, which was covered in mud and silt. When locals sa

Schooling improved in India, shows HDI

India has slipped one spot in the Human Development Index 2016. India’s HDI value for 2015 is 0.624 — which put the country in the medium human development category - positioning it at 131 out of 188 countries and territories.   Between 1990 and 2015,

IIFCL gives Rs 3.5 crore for cancer treatment

An appeal was made to PSUs to contribute funds under their CSR Scheme towards Health Minister’s Cancer Patient Fund-CSR for treatment of poor cancer patients.    India Infrastructure Finance Company Limited (IIFCL) contributed an amount of Rs 7.5 crore in 2015-16.

Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter