dear all
Further to my earlier mail communicating the response from RBI, IANS, one of the leading wire agencies has carried the following story today about this issue. Please read the story.
Srinivasan
Convenor
ELTF
The Reserve Bank of India (RBI) is looking into the complaint against State Bank of India (SBI) for shaming students and their parents for defaulting on their education loan.
"RBI's assistant general manager Sharmila Sampath Kumar has sent me an email Aug 28 stating that the issue is receiving the attention of the central bank," K. Srinivasan, convenor, Education Loan Task Force (ELTF), told IANS here Wednesday.
ELTF guides students on rules and regulations governing the education loans offered by nationalised banks. It also insists that students repay their dues.
The Bodinayakanur branch of SBI in Theni district, 515 km from here, displayed photos of students and their parents for defaulting on their educational loans.
Several political parties like DMK, CPI, VCK and others had condemned the SBI's action.
DMK president M. Karunanidhi had said: "When several money sharks are cheating banks of thousands of crores of rupees by not repaying loans, it is defamatory to display photos of students from poor and middle-class families for defaulting on education loans."
The CPI had said: "Indian industrialists get about Rs.5 trillion in annual tax concessions. Big industrial groups do not repay loans and these are written off as bad debts. Not worrying about these, the central government and the SBI are shaming students who had availed education loan. It is highly condemnable."
Srinivasan in his complaint to RBI said SBI's total advances as on March 2012 were Rs.7.58 lakh crore and its non-performing assets were Rs.37,156 crore -- around five percent of its total loan portfolio.
He said SBI's total education loan as on March 2012 was only Rs.11,500 crore spread over 560,000 accounts. The Non Performing Assets (NPA) under education loan portfolio would be around Rs.400 crore or two/three percent as against the total NPA of Rs.37,156 crore.
Given this situation, why should SBI single out the poor education loan defaulters and shame them by displaying their photographs, Srinivasan said in his complaint.
---------- Forwarded message ----------
From: Education Loan Task Force ELTF <action2020eltf@gmail.com>
Date: Wed, Aug 28, 2013 at 2:46 PM
Subject: [action2020] RBI responds to ELTF's complaint against SBI on shaming the poor students
We also reported the matter to RBI for suitable action. We argued when SBI is saddled with huge NPAs of big industrialists and big names, why they should isolate education loan borrowers, that too from the poor and dalit community to shame them for small deaults of even less than 20 or 30 thousands. We also questioned that as to why major defaulters of these banks to the extent of thousands of crores were let free. ELTF demanded the publication of top 100 defaulters of State Bank of India.
This issue got covered extensively in National media, because of the statements issued by various political parties.
Now RBI has sent a communication to us, informing us that the matter is receiving their attention and they would revert back shortly.
We will also update our members, when we receive further response from RBI. Please see the appended message.
Srinivasan
Convenor
ELTF
www.eltf.in
From: Education Loan Task Force ELTF <action2020eltf@gmail.com>
Date: Wed, Aug 28, 2013 at 2:46 PM
Subject: [action2020] RBI responds to ELTF's complaint against SBI on shaming the poor students
dear all
You may remember that many of the State Bank of India branches in Tamil Nadu started shaming the poor education loan defaulters by displaying their pictures prominently in their premises like criminals. Education Loan Task Force (ELTF) took up this issue through media and political leaders. Many political leaders condemned the action of SBI. www.eltf.in
---------- Forwarded message ----------
From: Irani, M M <mmirani@rbi.org.in>
Date: Wed, Aug 28, 2013 at 11:50 AM
Subject: SBI`s shaming poor education loan defaulters-Karunanidhi and other political leaders slam SBI
To: "info@eltf.in" <info@eltf.in>
From: Irani, M M <mmirani@rbi.org.in>
Date: Wed, Aug 28, 2013 at 11:50 AM
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 August 28, 2013
Shri K. Srinivasan, Convenor
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 on the captioned subject. In this connection we advise that the issue is receiving our attention and we shall revert at the earliest.
Yours faithfully,
(Sharmila Sampath Kumar)
Assistant General Manager_._,_
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