The State government is trying to enlist the services of commercial banks, cooperative institutions, and Reserve Bank of India (RBI)-approved financial institutions so that the common man gets hassle-free loans, Home Minister Ramesh Chennithala has said.
This would be part of the State government’s efforts to find an effective alternative to loan sharks, he told mediapersons here on Tuesday. The Cabinet would discuss the matter on Wednesday.
New lawThe State had laws to protect the common man from loan sharks. The government was planning to look into a new law implemented in Tamil Nadu in this regard.
The Home Secretary had been authorised to study the issue, he said. The government would move ahead with Operation Kuberan, against loan sharks. Such initiatives should be complemented with new social security alternatives so that people do not approach loan sharks during financial emergencies, he said.
Some police personnel had connections with the ‘blade mafia.’ The government would keep a close watch on such individuals and strict action would follow, he said.
Rejecting allegations that large players were being let off in Operation Kuberan, the Home Minister said it was the Home Department’s major drive and it would not be wrapped up in single day.
Operation Kuberan provided a platform for the common man to provide the police with information regarding unauthorised moneylending, he said.
“The government is committed to freeing society from the grip of moneylenders who are running a parallel economy,” he said.
