Asianet News LIVETHON: Banking expert calls for moratorium on loans taken by landslide-affected individuals
Banking expert Adi Keshavan has urged for a moratorium on loans, including personal loans and gold loans, taken by individuals affected by devastating landslides in Wayanad. Keshavan also highlighted the Reserve Bank of India's clarification that zonal managers can take decisions in critical situations arising out of natural disasters.
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FollowThiruvananthapuram: In the wake of the devastating landslides in Wayanad, banking expert Adi Keshavan has urged for a moratorium on loans taken by affected individuals. He pointed out that as per the Reserve Bank of India's guidelines, banks can restructure loans in areas affected by natural disasters. Speaking on Asianet News' 'En Naad Wayanad' Livethon, Keshavan emphasized the need for a collective decision by the State Level Bankers' Committee (SLBC) to declare a one-year moratorium on all loans, including personal loans and gold loans.
"A moratorium will provide much-needed relief to those affected by the landslides. If the District Consultative Committee passes a resolution, a moratorium can be declared immediately," he said.
Keshavan also highlighted the Reserve Bank of India's clarification that zonal managers can take decisions in critical situations arising out of natural disasters.
Loan moratorium will be a welcome move for the landslide-ravaged Wayanad, where many individuals are struggling to cope with the aftermath of the disaster.
Meanwhile, the State Level Bankers' Committee will soon decide on the loan moratorium for landslide disaster victims, said KS Pradeep, General Manager of SLBC. He also said that a direction will be given to avoid EMI collection from disaster victims and an investigation will be conducted into the incident.
Speaking during 'Livethon' on Asianet News, Pradeep assured that directions will be given to avoid collecting EMIs from disaster-affected borrowers and an investigation into the matter will be conducted. He acknowledged that EMIs might have been collected based on earlier directives and stated that it was not done intentionally.
Pradeep also announced that he would discuss the matter with the Chairman of Kerala Gramin Bank and instruct them to avoid such collections. He assured that banks would do everything possible to help within their capacity and officials are gathering information from relief camps.
The SLBC General Manager revealed that banks, including Kerala Gramin Bank and Kerala Bank, have provided loans totaling around Rs 29 crores in Chooralmala, with seven banks operating in Meppadi. A meeting between all banks was held after the disaster, with RBI representatives participating, and it was decided to provide maximum relief in accordance with RBI guidelines.
Asianet News' 'Livethon' 'Ennad Wayanad' aims to address questions raised by disaster-affected people in relief camps. The 'Livethon' will cover issues related to rehabilitation, livelihood, loan liabilities, children's education, and survival, with participation from prominent figures in politics, social, and cultural fields.
Also Read: Kozhikode Youth Congress embroiled in Wayanad landslide-relief fund scam, state leadership in denial
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