If your neighbor defaults, you don’t get the loan! Finance Minister replied.

New Delhi. Did you know that if your neighbor doesn’t pay back the money to the banks after taking a loan and defaulting, the banks can also refuse to give you a loan? At least one case raised in Parliament seems so. When the opposition raised this issue in Parliament, Finance Minister Nirmala Sitharaman also had to respond to it. If this happens to you, who and where can you complain about it?

In fact, Indian National Congress Solapur (Maharashtra) MP Praneethi Sushilkumar Shinde raised an issue in Parliament. In this he said, ‘Many villages have been adopted by national banks. But if there are 2-3 defaulters in the same village then the whole village has to pay. Banks refuse to lend to the rest of the village, including farmers and youth. If I complain to DM they say it’s not under my control. It is controlled by RBI. In such a situation, the people of many villages are not able to get Mudra Loan. So will anything be done about it?

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What did Finance Minister Nirmala Sitharaman say?
On the question of the opposition, the finance minister presented the side of the banks. He said, this matter is not compatible with the way banks work. But, if this is happening in an area, I will take it very seriously. This is not the way in which Mudra Loans are disbursed. Banks cannot do this. I cannot say for sure that this will happen. If this happens, full information will be taken on it and a solution to the problem will be sought.

What Banking Experts Say
Banking experts have also denied any such case. Ashwini Rana, General Secretary, Voice of Banking, says that banks do not practice such practices. If any such case has come up, it would have been on an individual basis. Banks generally do not do this. Vikas, manager of SBI’s Meerut branch, also says the same. He said that currently no such case has come to my knowledge and the decision to distribute the loan is taken according to the personal status of each person. One person’s mistake cannot be punished for everyone.

Where to complain about banks.
If a bank refuses to give you a loan without any reasonable reason and does not redress the grievances within one month, a complaint can be lodged with the RBI Ombudsman. The Reserve Bank has provided online complaint facility to the common man. You have to visit the portal https://rbi.org.in/Scripts/Complaints.aspx. After providing the required information here, you can enter the details of your complaint. RBI takes prompt and strict action on this and your complaint will also be resolved soon.

Tags: Bank Loan, Business news, Debt default