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and photographs of students, who are unable to repay education loan or where there is a delay in the repayment, should not be published.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

General Elections: Phase 3 voter turnout 64.4%

Polling in third phase of General Elections recorded an approximate voter turnout of 64.4%, as of 11:40 pm Tuesday, as per the data released by the Election Commission of India close to the midnight. The trend of lower turnout witnessed in the first two phases has thus continued in this round too.

How infra development is shaping India story

India is the world’s fifth largest economy with a GDP of USD 3.7 trillion today, and it is expected to become the third largest economy with a GDP of USD 5 trillion in five years. The Narendra Modi-led government aims to make India a developed country by 2047. A key driver of this economic growth and

75 visitors from abroad watch world’s largest elections unfold

As a beacon of electoral integrity and transparency, the Election Commission of India (ECI) exemplifies its commitment to conduct general elections of the highest standards, offering a golden bridge for global Election Management Bodies (EMBs) to witness democratic excellence first-hand. It continues foste

‘Oral cancer deaths in India cause productivity loss of 0.18% GDP’

A first-of-its-kind study on the economic loss due to premature death from oral cancer in India by the Tata Memorial Centre has found that this form of cancer has a premature mortality rate of 75.6% (34 premature events / 45 total events) resulting in productivity loss of approximately $5.6 billion in 2022

Days of Reading: Upendra Baxi recalls works that shaped his youth

Of Law and Life Upendra Baxi in Conversation with Arvind Narrain, Lawrence Liang, Sitharamam Kakarala, and Sruti Chaganti Orient BlackSwan, Rs 2,310

Voting by tribal communities blossoms as ECI’s efforts bear fruit

The efforts made by the Election Commission of India (ECI), over last two years, for inclusion of Particularly Vulnerable Tribal Groups (PVTG) communities and other tribal groups in the electoral process have borne fruit with scenes of tribal groups in various states/UTs participating enthusiastically in t

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter