‘Relaxation in interest rates not enough’; Loans of Wayanad victims should be completely written off, says CM

THIRUVANANTHAPURAM: Chief Minister Pinarayi Vijayan asked banks to waive off the loans of the victims of Mundakkai-Chooralmala areas who are in distress due to the Wayanad landslides. The chief minister made the demand in a special meeting of the state-level bankers' committee. The chief minister said that interest waiver or extension of leave is not enough.

What can be done is to write off the entire loan of the people of the area. This is unaffordable for any bank in the bankers' association. The chief minister pointed out that only a small amount of the total transaction comes here. Kerala Co-operative Bank has taken the exemplary decision to waive off the loan. Every bank should take the decision of writing off the loans.

This is not impossible. The chief minister pointed the action of the Kerala Grameen Bank in Chooralmala, which took the repayment of the loan from the relief money given to the affected people, and said that one should not behave automatically at a stage like this.

There was a huge protest against the Kerala Grameen Bank in Chooralmala for taking loan repayments from the relief funds given to the landslide victims in the Mundakkai-Chooralmala region. As soon as the government aid of Rs 10,000 reached the accounts of those who lost their livelihood in the calamity, the amount was taken. The amount was recovered despite the assurance of the state bankers' committee and the government that the bank loans would not be repaid immediately.

The chief minister recommended that the loans be written off in a special meeting of the state-level bankers' committee to decide on loan waivers for the landslide victims in Wayanad. The bankers committee has no authority to take the decision to write off the loan. The board of directors of the respective banks has to decide. Hence, the bankers' committee is expected to ask the banks to write off all eligible loans.

Banks are willing to write off loans for families where all members have died and for families with only children. However, the decision of the banks will be decisive in the case of other loans.