Drought: Mandya DC orders financial institutions to stop forcible loan recovery

District Deputy Commissioner Mandya Kumar has issued instructions to banks and financial institutions against forcefully collecting loans from farmers and the general public in view of the prevailing drought.

With all seven taluks in Mandya district declared drought-hit during the 2026 monsoon season, Mr. Kumar said in a statement on Monday that farmers, farm labourers, petty traders and the public in the district were facing severe financial hardship.

While Maddur and Pandavapura taluks have been declared moderately drought-affected, the remaining five taluks in Mandya district have been declared severely drought-affected.

“In this situation, complaints have been received from the public that some banks, microfinance institutions (MFIs) and housing finance institutions are putting pressure on borrowers to make loan repayments and resorting to violent debt collection measures,” he said.

Hence, referring to a letter from the Secretary to the Government, Ministry of Finance and Standard Operating Procedure (SOP) of the Reserve Bank of India, the Deputy Commissioner said, “All banks, MFIs and housing finance institutions operating in all the seven taluks of Mandya district are strictly directed not to carry out any form of forcible loan recovery, harassment, intimidation during the month period or undue pressure on the borrowers.

Mr. Kumar warned financial institutions against forcible loan recovery from drought-affected borrowers and made it clear that borrowers will not be subjected to threats, coercion, harassment, humiliation or any other form of undue pressure to repay loan repayments.

The Deputy Commissioner said that financial institutions will also ensure that their staff, agents and debt collection agents strictly adhere to these guidelines.

“In case of violation of the above instructions, appropriate action will be taken against the concerned persons in accordance with applicable laws and rules,” Mr. Kumar said.

Published – 28 Sep 2026 18:19 IST