Jammu, February 12: A woman entrepreneur died in Jammu on Thursday after seeing the bank recovery teams at her door step. A day before, a team of bank had revealed the records of corruption that is prevalent in banking and other allied sectors along with the irregularities in the modes of recovery of loans advanced by them.
The incident points out that there is an increase in the NPAs (Non Performing Assets) of banks and the increasing pressure by the authorities are forcing staff to recover loans at any cost.
There is a cut throat competition among the banks to reach the targets along with the deep rooted nexus spread within the banks, their agents and affluent people and it has resulted in the increasing of NPAs.
The sources said that the woman entrepreneur of Jammu, who died, had secured a loan of paltry 1.2 lakhs for setting up a dairy farm. Surprisingly, no one goes after the big fish who have secured huge loans allegedly by paying hefty commissions and who later casually turn defaulters.
In a revelation made by the office bearer of the Bank Employees’ Association, there are more than 40 odd defaulters in Jammu and Kashmir who together owe a total of Rs 208 crores to different banks operating in Jammu and Kashmir but no one goes to their doorsteps beating drums for recovery of their debts.
The nexus of agents and District Industries Centers is a well established system of corruption wherein a percentage has to be paid for getting the feasibility and other reports; another cut then has to be paid to the banks also, claimed an unemployed youth, Umesh who wanted to start a poultry unit as has been reported by Early Times
Pertinently, the guidelines set by Reserve Bank of India for loan recovery said that the bank cannot harass or abuse any customer while recovering loan. They can be contacted only on telephone numbers provided by them and not on any other number. The personal visits can be made during decent hours only. The bank staff cannot use abusive language with the non-paying customer.
If there is a case where customers default on payments, the bank should first inform them about the details of recovery agents hired by the bank. There should be a repossession clause included in the contract and the customers should be given prior notice of the repossession in case of non-payment.