Adding to the trauma of the survivors of Wayanad landslides, the Kerala Gramin Bank has deducted loan EMIs from the emergency relief aid that had been disbursed by the state government to victims, as per a report in The Times of India.
It is noteworthy that the Centre holds a majority stake - 50 per cent directly and 35 per cent through PSU Canara Bank in Kerala Gramin Bank. Meanwhile, the state government holds 15 per cent stake in the bank.
Several victims claimed that up to Rs 5,000 loan EMIs were deducted from their bank accounts as soon as they received the relief amount.
"I am a dairy farmer. The landslide washed away my cattle shed and eight cows. We don't have anything left. I was planning to use the (relief) amount to provide advance for a house to be taken on rent," the publication quoted Rajesh of Chooralmala as saying who lost his house in the landslide and claimed that the bank took an EMI of Rs 3,400 from the relief he received.
Similarly, Mini Mol who took Rs 50,000 for the construction of her house said that the bank deducted Rs 3,000 from her aid.
This comes days after the Kerala Bank, a consolidation of district cooperative banks in the state, announced on August 12 that it would waive loans for those impacted by the devastating landslides of July 30 in Wayanad. In the aftermath of the disaster in the hilly district, the bank management has decided to write off the loans of deceased borrowers who had availed loans from its Chooralmala branch, as well as those who lost their houses and properties pledged as securities, according to an official statement.
"Even if the state-level bankers' committee (SLBC) has not issued a formal directive in this regard, the bank branch manager could have approached the issue in a humanitarian manner at his own risk, which did not happen... (It) is definitely an indecent act; we will raise the issue with the SLBC," the publication quoted Minister Vasavan as saying.
While the Wayanad deputy collector who is officiating as the CEO of the district disaster management authority directed Gramin Bank to return the money, when SLBC's general manager reached out to the chief of the Gramin Bank, she attributed the deductions to standing instructions in the account before the disaster.
(With PTI inputs)