Ex-Servicemen Committing Suicide Due To SBI

YSRCP MP, V.Vijaya Sai Reddy questioned the Minister of
Finance about the harsh policy of collecting penal and other interests and
about the educational and other loans given to farmers and students by SBI.

The MP has asked whether it is fact that State Bank of India
has a very harsh policy of collecting penal and other interests from
ex-servicemen, farmers, widows, particularly in Andhra Pradesh, Telangana and
Haryana and whether Government is also aware that people, particularly the ex-servicemen
are committing suicide over the loans taken by them due to immense pressure put
by the SBI.

He has also inquired about the details of such cases from
the Bhiwani Branch of SBI in Haryana and asked about the steps proposed by the
Government to direct the SBI to rescind from such policies.

As a reply to these questions, minister of finance, Arun
Jaitley has replied that all banks including State Bank of India (SBI) are
required to have a well laid down board approved policy for recovery of dues
from all type of borrowers as per the legal obligations cast upon the Banks .
SBI has informed that it always keeps in its business practice, high value of
humanity without violating the legal obligations cast upon the Bank.

SBI has informed that in its Bhiwani branch, 917 loans were
sanctioned to the pensioners with a portfolio of Rs. 12.25 crore. Out of this,
loans given to ex-servicemen are 793 for Rs. 7.10 crore. As advised by the
branch, out of these there are only 10 loan accounts are overdue. No instance
of any ex-serviceman committing suicide over the loans taken by him at Bhiwani
branch has come to the notice of SBI.

Vijaya Sai Reddy has also questioned the minister of finance
whether State Bank of India (SBI) has given educational and other loans to
farmers and students since 2008, whether it is a fact that SBI has shown
predatory behavior against elderly women and men of 70 years, whether SBI has
confiscated Fixed Deposits of widows and elderly women who acted as Guarantors
for family members and asked about the reasons for Government directing SBI to
spare big business and harass women, farmers and tribals.

Minister of the state in the Ministry of Finance, Santosh
Kumar Gangwar, has replied to these questions. He has informed that State Bank
of India (SBI) has given educational and other loans to farmers and students.  He has mentioned that SBI’s products are
non-discretionary & non-discriminatory. As per the extant policy of SBI,
the age or marital status of a person is not a criteria for taking guarantee
for a loan. Hence, if any such loan becomes bad, the Bank initiates normal
recovery procedures against the borrower and the guarantor. In such cases, if
any other deposit in the name of the borrower or the guarantor is available
with the Bank, the Bank exercises its general lien available as per Section 171
of the Contract Act 1872, documents executed in the matter and as per
prevailing banking practice, he has informed. He has stated that no directive/instruction/communication
has been issued by the Government of India to spare big business and harass women,
farmers and tribals.