Kodagu Deputy Commissioner (DC) Dr Venkat Raja speaking after presiding over a meeting of Micro Finance and Pawn Brokers in his office at Madikerti recently gave clear instructions to follow the guidelines of Reserve Bank of India (RBI).
Speaking further Deputy Commissioner said that according to the RBI Guidelines, only Rs 2 lakhs amount can be lent to a customer and the borrower must have capacity of repaying the loan and financial companies should note all these points and they should not unnecessarily harass the borrower.
Everyone should have financial discipline. Giving loan to the needy persons and collecting the borrowed money within stipulated period is not acceptable. Such type of cases should be reported and strict action will be on taken on those money lenders,DC warned.
DC also warned that harassing loan borrowers is also not allowed and Suo-Moto cases will be filled on those people.
The Chief Minister (CM) has taken this issue seriously. Loan sheet should be given to borrowers. Must be in the legal framework. DC explained that the RBI Guidelines should be printed in a thick letter and printed in Kannada. There should be information about the loan interest. Loan borrowers should not be disturbed and companies should give enough time for repayments.
DC also informed that after borrowing loan if the borrower turns against the finance companies,then finance companies can contact help line also DC added. There should be peaceful atmosphere in the entire society and the protection of all is the most important of the administration,” DC said.
Dr Venkat Raja instructed the Lead Bank Manager to provide information of micro -finance companies that are registered and non -registered in the district.
The public can complain of micro-finance harassment to the police control room number or the Control Room of the DC’s Office.
Speaking on the occasion District Superintendent of Police (SP)K. Ramarajan said that nine companies have been given a loan so far and warned whether RBI guideline are followed while lending and SP warned that strict action would be taken if they were abused.
Speaking on the occasion a representative of a micro -finance company informed that borrowers are not coming forward to pay a loan and theyare harassing us he informed and  appealed to look at these types of cases also.
Probation IPS officer Benaka Prasad and Additional Superintendent of Police Sundararaj were present on the occasion.
