Latur, Oct 30 The administration in Maharashtra’s Latur on Friday warned of a crackdown against small finance companies and private lenders who use coercive and illegal methods to recover loans from distressed farmers amid the drought situation.
Chairing a meeting with financial institutions and aggrieved citizens, Latur Collector Bharat Bastewad instructed lenders to strictly abide by Reserve Bank of India (RBI) guidelines, stating that intimidation, physical threats, or hiring recovery agents with criminal backgrounds would invite action.
The collector heard grievances from borrowers and reviewed the responses of representatives of the concerned institutions.
Bastewad noted that farmers and other borrowers were facing financial difficulties due to drought and urged lenders to adopt a sensitive and humane approach while dealing with them.
He also asked financial institutions to consider applications from borrowers seeking one-time settlements and cooperate in resolving disputes through the upcoming National Lok Adalat organised by the district and sessions court.
The collector said that institutions that violate recovery norms or resort to illegal practices would face legal and criminal action by the police and administration.
The District Deputy Registrar of Cooperative Societies was also directed to intensify monitoring of loan recovery activities by small finance companies, microfinance institutions and private lenders.
(PTI News)
