Relief for Wayanad! Kerala Bank writes off loans taken by private individuals at its Chooralmala branch

Wayanad: Due to the exceptional situation in landslide-hit Wayanad, the loans taken by the Chooralmala branch of Kerala Bank are being written off. This is a relief to the people affected by the massive landslides who have lost their livelihood. Though the volume of loans disbursed by Kerala Bank is still unclear, the loans taken by the individuals in the area amount to Rs 290 million. This exemplary measure could also serve as an indicator for other banks on how to deal with the situation.

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Following the devastating landslides, Kerala Bank had already donated Rs 50 lakh to the Chief Minister’s Distress Relief Fund (CMDRF) to support relief and reconstruction efforts in Wayanad. Borrowers of Kerala Bank branches in other areas like Mundakkai are also hoping for similar assistance, though there is no confirmation on this.

Earlier on Monday (August 12), banking expert Adi Keshavan had called for a moratorium on loans of affected individuals. He pointed out that as per the Reserve Bank of India’s guidelines, banks can restructure loans in natural disaster-hit areas. In an interview with Asianet News’ ‘En Naad Wayanad’ Livethon, Keshavan stressed the need for a joint decision by the State Level Bankers’ Committee (SLBC) to impose a one-year moratorium on all loans, including personal loans and gold loans.

Keshavan also highlighted the Reserve Bank of India’s clarification that zone managers can take decisions in critical situations due to natural disasters.

Meanwhile, the state banking committee will soon decide on a moratorium on loans of the landslide disaster victims, said KS Pradeep, general manager of SLBC. He also said that a directive will be issued to avoid collection of EMIs from disaster victims and that the incident will be investigated.

During a ‘livethon’ on Asianet News, Pradeep assured that instructions would be given to avoid collection of EMIs from disaster-hit borrowers and an investigation would be initiated into the matter. He admitted that EMIs might have been collected based on earlier instructions and stated that this was not done intentionally.

Pradeep also said that he would take up the matter with the chairman of Kerala Gramin Bank and instruct them to avoid such collections. He assured that the banks would do everything possible to help within their means and that officials would collect information from relief camps.

Also read: Asianet News LIVETHON: Banking expert calls for moratorium on loans of landslide-affected people