Elderly Couple Ends Life Due To Humiliation By Bank Employees, Leaves Video Note

When banks offer loans to customers, they show care and respect towards customers; however, as soon as the loan file is sanctioned, an attitudinal shift occurs. In some cases, it is not only about sending repayment reminders but also involves the humiliation of the borrowers. Recently, an elderly couple in Ludhiana, Punjab committed suicide, alleging distress on account of constant humiliation from a bank’s manager and staff. They left a video message alleging that the bank employees were harassing them and had no other choice than to commit suicide, reported the Indian Express.

The couple (deceased Jasbir Singh, 59, and his wife Kuldeep Kaur, 58) had a hosiery shop in the city. They took a loan from a private sector bank and paid back 55 equated monthly installments (EMIs). However, the bank officials harassed them for being late in repaying this month’s installment

Reportedly, Singh said in the video message that they were humiliated to such an extent that they were left with no other option. “They did not even honour my white beard. I have already repaid 55 instalments of my loan and even then, I was humiliated so much that it became unbearable,” Singh said in the video.

In the recorded message, he acknowledged that his family, including his son, daughter, and grandchildren, who respect him and are nice to him. When this incident came to the notice of the public, the police filed an FIR against the branch manager and two of the bank's employees based on the video and the statement of the deceased’s son.

The son told the police that the elderly couple had taken a loan of Rs 2 crore for their hosiery and garment business. They had repaid 55 installments of the loan, amounting to more than Rs 1 crore. However, due to some financial stress this month, the installment was delayed. Reportedly, the branch manager and his colleagues called the deceased, asking for repayment. They even visited their (elderly couple) shop to harass and threaten them, the son informed the police.

The FIR has been lodged against the bank officials under different sections of the Bharatiya Nyaya Sanhita (BNS).

Usually, banks hire recovery agents for loan recovery, who sometimes use intimidating tactics. However, the Reserve Bank of India (RBI) has stipulated the rules to avoid such incidents. In the circular dated July 1, 2011, it stipulated, “In the matter of recovery of loans, the lenders should not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.

For agents’ services, RBI laid down the rules in a circular dated April 24, 2008, “It is understood that some banks set very stiff recovery targets or offer high incentives to recovery agents. These have, in turn, induced the recovery agents to use intimidating and questionable methods for the recovery of dues. Banks are, therefore, advised to ensure that the contracts with the recovery agents do not induce adoption of uncivilised, unlawful, and questionable behaviour or recovery process.”