Banks must handle delicately with poor borrowers who default on their loans.
Finance Minister Nirmala Sitharaman made an intervention during a Lok Sabha session, addressing the issue of banks dealing with poor farmers regarding repayment of missed loan installments. Minister of State for Finance Bhagwat Karad was responding to a question about harsh tactics used by banks against poor loan defaulters when Sitharaman stepped in.
She acknowledged that the matter is sensitive and has been brought to the government’s attention on multiple occasions. Sitharaman stated that both public and private banks have been instructed through the Reserve Bank of India (RBI) to handle such cases in a humane and sensitive manner. The government is aware of instances where banks have used arm-twisting tactics, and they have taken steps to ensure that banks treat poor farmers with compassion and understanding in such situations.