By Shankar Raj*
Thiruvananthapuram: The move by the Kerala Gramin Bank in Chooralmala in Wayanad to deduct the equated monthly instalments (EMIs) from the emergency relief amounts given by the State Government to the landslide survivors has snowballed into a major controversy, forcing the bank to credit back the amount.
The state government had credited Rs 6000 into the accounts of the survivors of the July 30, 2024, landslide in Chooralmala as an immediate emergency relief. However, in a shocking move, the Kerala Gramin Bank deducted Rs 3000 as EMI from a few of the survivors, according to a ‘Livethon’ programme on Asianet.
The government condemned the move of the bank and said it was an inhuman act. A few ministers like V Sivankutty were blunt in condemning the bank.
Following an uproar, the bank promised to credit the claimed amount back into the respective accounts and promised a meeting of the State Level Bankers’ Committee (SLBC) to take stock of the situation.
Immediately after the bank’s move went public, Non-Resident Indians (NRIs) from Gulf countries and a few philanthropists came to the aid of a few hapless survivors of the landslide by taking over their entire loan amounts.
Reports said the outstanding loan amounts from the region totals to about Rs 4 crore. While some suggested that banks should waive off the EMIs for at least a couple of years, others said the financial institutions should waive off the entire loan amount.
Although the state government had earlier announced plans to convene a special meeting of the SLBC to address loan repayment issues for the landslide survivors, they have demanded stronger government intervention.
They have urged the government to write off their entire loans rather than merely offering a moratorium. They argue that a moratorium provides little relief, as the disaster has severely impacted their ability to repay, with many having lost their jobs, agricultural lands and livestock and are facing an uncertain future.
*Shankar Raj is a former editor of The New Indian Express, Karnataka and Kerala, and writes regularly on current affairs.
