Delaying loan: SHRC for action against bank staff


Loan under PM’s Rozgar Yojana

State Human Rights Commission (SHRC) chairperson Antony Dominic has directed that action be taken against bank officials who delayed the processing of a loan request by a home-maker to start a small industrial enterprise under the Prime Minister’s Rozgar Yojana by over an year.

The SHRC directed the Chief General Manager of SBI to take action against the bank officials in SBI’s Varkala branch.

The complaint was filed on behalf of a Cherunniyoor native, G. Ammini, by her husband.

The petition said that the loan application had been given to the SBI Varkala branch on November 2, 2017. The applicant approached Dhanlaxmi Bank as the SBI did not respond to her request even after six months. However, the application at SBI had to be cancelled to submit fresh application at Dhanlaxmi Bank.

SBI Varkala did not respond to the petitioner’s request to cancel the application. The same was cancelled only after the petitioner approached the SHRC with the complaint, the petition said.

The SHRC had sought reports on the incident from the District Industrial Centre and the SBI. The latter reported that the loan applications are processed through a centralised processing system and that it was because of some technical difficulties that the application could not be cancelled.

The SHRC pointed out that the bank had failed to process the application in proper time.

Rights violation

The scheme was meant to give employment to people who were trying to earn a livelihood and the bank’s attitude was defeating the very purpose of the scheme. The losses suffered by the applicant because of the bank’s “irrational delays” in processing the application and providing her the loan is indeed a human rights violation, the SHRC said in its order.

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Printable version | Jan 25, 2020 2:28:52 PM |

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