To realise the developed India by 2020

Tuesday, October 8, 2013

[India_Vision_2020] SBI's shaming poor student defaulters of education loan - SBI withdrew the instructions - RBI responds

 

dear all

Members may be aware during the first week of August, many of the State Bank of India branches shamed poor students who defaulted education loan repayment by displaying their photos in a flex board prominently in all branches like criminals being displayed in police stations.  Even the defaulters of small amounts of around 20 to 30 thousand were displayed.  Even the photographs of  girl students were displayed.  They consciously did not display the photos of other big defaulters of loans other than education loan. 

This was probably done only in Tamil Nadu under the instructions of over enthusiastic Senior Executives of their Head Office.  Education Loan Task Force (an initiative of Action 2020 team of this India Vision group) took up the matter with RBI and also circulated among the media and other political leaders.  The entire media picked up the story.  Senior political leaders, including Mr Karunanidhi issued statements condemning SBI.  It was also reported in national channels.

Though SBI had defaulters from all the other categories of loans, they chose to display only poor students who had availed education loan.   ELTF blamed SBI for not having courage to display the names of big borrowers who have committed in thousands of crorres.  ELTF also demanded SBI to release in all the media, the details of the top 100 NPA accounts of SBI.  Till date, they have not displayed the list of Top 100 defaulters of SBI. 

The over enthusiasm of some of the Senior Executives of SBI  boomeranged.  Shamelessly some of the Senior Executives also defended their action of shaming poor students in media.  After this matter got into controversy, they silently withdrew the flex boards from all the branches. 

RBI had sent us an acknowledgement on 28th August 2013 informing us  that they were looking to the matter.  We shared this in the group also.    Now  after investigation, RBI has written to ELTF informing us that SBI has since instructed the Branches to  'keep in abeyance shaming of education loan defaulters'.

Though SBI is doing a very good job under education loan segment, unfortunately, they got shamed by shaming poor students, due to the ill advise of senior management officials. 

We append below the mail received from RBI.  We place on record our appreciation to RBI for prompt intervention.  We also appreciate SBI for responding to the public sentiments immediately. 

K. Srinivasan
Moderator, India Vision Group
Convenor, Education Loan Task Force

---------- Forwarded message ----------
From: Irani, M M <mmirani@rbi.org.in>
Date: Tue, Oct 8, 2013 at 12:53 PM
Subject: SBI`s shaming poor education loan defaulters-Karunanidhi and other political leaders slam SBI
To: "info@eltf.in" <info@eltf.in>


RPCD.MSME & NFS.No.            /06.12.05/2013-14                                    October 8, 2013

 

Shri K. Srinivasan, Convenor

Education Loan Task Force info@eltf.in

 

Dear Sir,

 

SBI`s shaming poor education loan defaulters-Karunanidhi and other political leaders slam SBI

 

Please refer to your e-mail dated August 5, 2013 and our interim reply dated August 28, 2013 on the captioned subject. In this connection we have been informed by State Bank of India that photographs of Education Loan NPA borrowers were displayed in the Branch notice boards and in some cases in the newspapers after following due process as laid down in the internal guidelines of the Bank. However, w.e.f. August 5, 2013 instructions have been issued by the corporate office of SBI to keep this in abeyance in respect of Education Loan  borrowers.

 

 

 

Yours faithfully,

 

 

(Sharmila Sampath Kumar)

Assistant General Manager

 

 


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