Thiruvananthapuram: The Reserve Bank of India (RBI) said it cannot instruct banks to waive loans of Wayanad landslide disaster victims. Currently, the feasible options are either a moratorium or restructuring of liabilities. Banks can take the necessary decisions in this regard, said RBI in a letter to KV Thomas, state govt’s representative in New Delhi.
However, Thomas said that he requested RBI governor Shaktikanta Das, who visited Kochi on Saturday, to have a sympathetic approach towards Wayanad disaster victims. Decisions, including loan waivers, can be taken by the state bankers’ committee, Thomas said.
Earlier, Thomas had written to Prime Minister Narendra Modi requesting that Mundakkai-Chooralmala landslide be declared a national disaster and assistance be provided accordingly. In response, Union minister of state for home affairs Nityanand Rai conveyed to Thomas that central govt’s criteria do not permit declaring the Wayanad tragedy as a national disaster.
The Centre’s letter explained that, according to the guidelines, it is not feasible to declare floods and landslides as national disasters. Kerala was allocated Rs 388 crore as state disaster response fund (SDRF) for this financial year. This amount was provided in July and Nov.
The accountant general informed that there is currently a balance of Rs 394 crore in SDRF. The letter indicates that the necessary funds for disaster relief are available in Kerala’s disaster response fund.
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Can’t force banks to waive loans, says RBI
RBI, in a letter to KV Thomas, the state govt’s representative in New Delhi, said that it cannot instruct banks to waive loans of those affected by the Wayanad landslides. Meanwhile, Thomas said he requested RBI governor Shaktikanta Das to adopt a sympathetic approach towards the landslide-affected people.
The feasible options are either a moratorium or restructuring of liabilities and banks can take the necessary decisions in this regard, said RBI in the letter. This comes just days after the Union govt informed that the its criteria do not permit declaring the Wayanad tragedy a national disaster. tnn |
