Kerala Gramin Bank reverses EMI deductions for Wayanad survivors

Kerala Gramin Bank quickly reversed EMI deductions from the accounts of Wayanad landslide survivors after youth organisations protested outside the its regional office in Kalpetta on Monday.

Protests erupted following reports that the bank had deducted equated monthly instalments (EMIs) from the accounts of those affected by the landslide. The bank explained that the deductions occurred automatically when money was credited to the loan accounts.

"We will address these technical issues. Each branch has been instructed not to debit from these accounts," Kerala Gramin Bank chairperson Vimala Vijaya Bhaskar told reporters in New Delhi.

Earlier, the District Collector, also the chairperson of the District Disaster Management Authority, had ordered banks to return the amount deducted from the Rs 10,000 solatium disbursed by the State government as emergency relief.

Bhaskar confirmed that the bank had received the notice and would take appropriate action.

Relief measures 

The Kerala government had announced an ex-gratia payment of Rs 6 lakh to the families of those who lost their lives in the July 30 Wayanad landslide.

Survivors with 70% disability will receive Rs 75,000, while those with 40-60% disability will get Rs 50,000. Additionally, Rs 6,000 will be provided to those willing to move from relief camps to rented accommodations.

Chief minister urges loan waiver

Chief Minister Pinarayi Vijayan urged the State-Level Bankers’ Committee (SLBC) to take steps to write off the loans of the landslide victims and the survivors. 

Addressing the SLBC meeting in Thiruvananthapuram on Monday, the chief minister said: "The Wayanad disaster has no parallel. Most of those affected by the disaster are farmers. Most of them have lost their houses in the disaster and their farm lands have been washed away. The banks should write-off the loans."

The SLBC meeting was called in the State capital to decide on a loan moratorium for the landslide survivors.  

The Kerala government had earlier requested the SLBC to increase the consumer loan limit for survivors from Rs 10,000 to Rs 3 lakh. The decision on a moratorium for agricultural and other loans will depend on the guidelines issued by the Reserve Bank of India.

Worst tragedy in decades

The landslide in Wayanad is among the worst in decades, with 236 bodies and 212 body parts recovered, while 118 people remain missing from the most affected settlements of Mundakkai and Chooramala.

Over 600 livelihoods were affected as around 200 buildings were washed away. The landslide has exacerbated the plight of farmers in the tribal district, already struggling with crop loss due to rampaging elephants. 

Over 100 farmers have died by suicide in Wayanad over the past 15 years, mostly due to debt, prompting the State Human Rights Commission to call for urgent government action.