Ex-Servicemen Committing Suicide Due To SBI

YSRCP MP, V.Vijaya Sai Reddy questioned the Minister of Finance about the harsh policy of collecting penal and other interests and about the educational and other loans given to farmers and students by SBI.

The MP has asked whether it is fact that State Bank of India has a very harsh policy of collecting penal and other interests from ex-servicemen, farmers, widows, particularly in Andhra Pradesh, Telangana and Haryana and whether Government is also aware that people, particularly the ex-servicemen are committing suicide over the loans taken by them due to immense pressure put by the SBI.

He has also inquired about the details of such cases from the Bhiwani Branch of SBI in Haryana and asked about the steps proposed by the Government to direct the SBI to rescind from such policies.

As a reply to these questions, minister of finance, Arun Jaitley has replied that all banks including State Bank of India (SBI) are required to have a well laid down board approved policy for recovery of dues from all type of borrowers as per the legal obligations cast upon the Banks . SBI has informed that it always keeps in its business practice, high value of humanity without violating the legal obligations cast upon the Bank.

SBI has informed that in its Bhiwani branch, 917 loans were sanctioned to the pensioners with a portfolio of Rs. 12.25 crore. Out of this, loans given to ex-servicemen are 793 for Rs. 7.10 crore. As advised by the branch, out of these there are only 10 loan accounts are overdue. No instance of any ex-serviceman committing suicide over the loans taken by him at Bhiwani branch has come to the notice of SBI.

Vijaya Sai Reddy has also questioned the minister of finance whether State Bank of India (SBI) has given educational and other loans to farmers and students since 2008, whether it is a fact that SBI has shown predatory behavior against elderly women and men of 70 years, whether SBI has confiscated Fixed Deposits of widows and elderly women who acted as Guarantors for family members and asked about the reasons for Government directing SBI to spare big business and harass women, farmers and tribals.

Minister of the state in the Ministry of Finance, Santosh Kumar Gangwar, has replied to these questions. He has informed that State Bank of India (SBI) has given educational and other loans to farmers and students.  He has mentioned that SBI’s products are non-discretionary & non-discriminatory. As per the extant policy of SBI, the age or marital status of a person is not a criteria for taking guarantee for a loan. Hence, if any such loan becomes bad, the Bank initiates normal recovery procedures against the borrower and the guarantor. In such cases, if any other deposit in the name of the borrower or the guarantor is available with the Bank, the Bank exercises its general lien available as per Section 171 of the Contract Act 1872, documents executed in the matter and as per prevailing banking practice, he has informed. He has stated that no directive/instruction/communication has been issued by the Government of India to spare big business and harass women, farmers and tribals.