Directed banks to “sensitively” deal with loan collections: Sitharaman in Lok Sabha

New Delhi [India], July 24 : Acknowledging that she has received complaints of merciless loan collections by some banks, Union Finance Minister Nirmala Sitharaman informed Parliament on Monday that instructions were given to banks, asking them to deal with sensitivity.
"I have heard complaints how very mercilessly the paying back has been followed by some banks whether they are public sector banks or private sector banks,” Sitharaman said in Lok Sabha during the Question Hour.
“The government has through the RBI also instruct(ed) such banks (that) such harsh steps should not be taken and they should approach this whole matter with humanity and sensitivity in mind. That instruction has been sent to everyone, be it private or public,” she added.
Dhairyasheel Mane, Eknath Shinde-led Shiv Sena MP from Hatkanangle in Mahararashtra, raised the question on exorbitant interest rates on loans by some banks.
He asked the government what has it done to deal with such banks or whether it will direct them not to charge interest rates arbitrarily.
On the interest rates, MoS Finance Bhagwat Kishanrao Karad, who also comes from Maharahstra, participated in the Question Hour. Karad said the government doesn’t interfere on rate of interest at which banks provide loans.
The MoS said it is the Board of a bank or its officials which take decision about interest rates. In the same breath, he also added that PM Modi-led government has introduced various schemes through which common people can get loans at relatively cheaper rate and in the process can stay away from the clutches of Sahukars (moneylenders).