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LS concerned over banks' 'goonda' recovery agents

Posted on Dec 14, 06:02PM | UNI

Concern was raised in the Lok Sabha over the arm-twisting techniques of 'goondas' employed by banks to recover loans from their customers.

During Question Hour, Bhartruhari Mahatab(BJD) and Sanjay Nirupam(Congress) asked Minister of State for Finance Namo Narain Meena as to what steps the Government has taken to prevent such tactics adopted by banks.

Mr Meena said banks are commercial organisations and have every right to recover the money given in loans.

He, however, disagreed with the 'goonda' approach adopted by the recovery agents employed by the banks.

The Minister said in case of harassment or any other complaint the customer concerned can approach local police and police will do the necessary probe.

He said in case of disputes in loans, there is an ombudsman with whom the bank and its customer can sit and settle the issue of unrecovered loan amicably.

Regarding one-time settlement scheme, the Minister said it is an ongoing scheme and maintained that for loan recovery no distinction is made between small and big borrowers.