Kerala Bank Faces Backlash For Deducting EMIs From Wayanad Survivors’ Relief

Wayanad, August 19 – Kerala Gramin Bank has come under fire for deducting loan EMIs from the emergency relief funds provided by the state government to survivors of the devastating Wayanad landslides that occurred on July 30. The disaster claimed over 230 lives and left over 100 missing, leaving the affected families in dire need of financial support.

The Controversial Deduction

The Kerala government had announced an emergency relief package of Rs 10,000 for each affected family. However, many survivors were shocked to find that the Kerala Gramin Bank had deducted loan EMIs of up to Rs 5,000 from this relief amount as soon as it was deposited into their accounts. For instance, Mini Mol, who had taken a loan of Rs 50,000 for constructing a house, saw Rs 3,000 deducted from her relief aid.

Rajesh, a dairy farmer who lost his house and cattle in the landslide, was another victim of this deduction. “I planned to use the relief money as an advance for a rental house, but the bank took Rs 3,400 as EMI,” he said, highlighting the severity of the situation for those already struggling to rebuild their lives.

Government’s Response

The move by the bank has drawn sharp criticism from various quarters, including Kerala’s cooperatives minister, VN Vasavan, who termed it “cruel.” He expressed his disappointment that the bank did not act with compassion in these exceptional circumstances. “Even if the state-level bankers’ committee (SLBC) had not issued a formal directive, the branch manager could have made a humanitarian decision,” Vasavan stated, promising to take up the issue with the SLBC.

KS Pradeep, general manager of SLBC, clarified that the deductions were made due to standing instructions in the accounts before the disaster struck. Despite this, the Wayanad deputy collector, who is also the CEO of the district disaster management authority, has ordered the Kerala Gramin Bank to return the money deducted from the relief funds.

Conclusion

The deduction of EMIs from the relief aid intended for Wayanad landslide survivors has sparked widespread outrage, with many calling for greater sensitivity in handling such cases. The government’s intervention highlights the need for a more compassionate approach in disaster management, ensuring that survivors receive the full support they deserve in times of crisis.