DC takes banks to task for delay in sanctioning microcredit loans

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Mysore/Mysore: Support from Bank officials for the high rate of pending applications in banks regarding the approval of microcredit to small entrepreneurs, Deputy Commissioner (DC) Dr. Bagadi Gautham questioned some banks for the inordinate delay in the disposal of applications. The DC was addressing the District Master Bank District Level Review Committee (DLRC) meeting yesterday at ZP Hall here.

The irate DC warned to close the accounts of various government departments in some private banks in case they fail to implement government-initiated welfare programs by offering loans to various sections of society.

Pointing out that there were more than 1,000 pending applications in the banks, out of which HDFC Bank alone accounted for the majority of applications, Dr Bagadi Gautham chastised bank officials for the delay even in releasing the loan of 10,000 rupees given to street vendors.

When the CD raised a few questions about the reasons for the delay, the response was either silence or a standard response from bank officials indicating that the matter will be brought to the attention of higher authorities. He reprimanded them for attending the meeting without any preparation.

The DC questioned the representative of Karnataka Gramin Bank on the reasons behind the rejection of loan applications from beneficiaries of various state and central government schemes.

Warning banks against any undue delay in the release of loans, Dr Bagadi Gautham warned that he would be forced to order the closure of bank accounts of various government departments, bodies and agencies, if the banks continued their attitude careless and uncooperative.

He further said that he would write to the RBI on pending inquiries from banks regarding the advancement of loans under the PM-SVANidhi (PM Street Vendors Atma Nirbhar Nidhi) scheme.

Blaming Karnataka Bank officials for their failure to release loans, the DC pointed out that farmers were staging protests outside the DC office over failures in releasing loans and extending other benefits.

He also blamed the Bank for forcing customers to credit a minimum of Rs 1,000 even for zero balance accounts.

He asked the banks why they seek security for Kisan credit cards and why they refuse to link farmers’ Milk Dairy accounts.

P. Gopinadha Sastry, AGM, Lead Bank, Mysuru, RBI District Manager Tanu Nanjappa, NABARD District Development Manager T. Venkatasubbaiah, ZP CEO BR Poornima and other officials were present.

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