Recently, I had written about how banks flout the guidelines of the Reserve Bank, the Indian Banks Association and the government on education loans and how the banking ombudsman had in many such cases come to the rescue of consumers. Well, here’s an interesting follow-up on that story. And I wish to write about it as it opens our eyes to the ground reality in many parts of the country vis-à-vis government schemes and programmes aimed at helping the economically weaker sections of society.

A consumer from Uttar Pradesh called me up saying that his son had got admission for a BTech course in Roorki and he urgently needed Rs 3 lakh, but the manager of the public sector bank in his village had told him that there was no such loan. I told him that the bank was obviously misleading him and he should complain to the nodal officer of the bank.

Apparently, the manager’s attitude changed completely when he spoke about the nodal officer. He was asked to fill up the loan application form and promised that the loan would be sanctioned in a couple of days. On this assurance, the consumer, who runs a small paan shop in the village, even paid for his son’s college admission fee.

What happened next was shocking. First came a demand for Rs 50,000 for releasing the loan and when the consumer met it by borrowing from a friend, there was a further demand for Rs 20,000. When he failed to meet it, he was told that he would not get the loan. Fortunately, the consumer had a witness — the person from whom he had borrowed the money — to the demand and also receipt of bribe. He had also marked the currency notes for identification. I told him to get a statement from the witness, have it attested, write down his own complaint and take it to the senior manager of the bank branch that had a supervisory control over the village branch.

Obviously news travels fast in villages and even as he got the statements ready, he was called to the bank and his money returned with an assurance that the loan amount would be released in seven days. The consumer, in turn, had to promise not to complain.

Is this how things work in certain small towns and villages? My advice to consumers is, please do not give in to the demand for bribe. Complain. Remember, in addition to the nodal officers of the banks, you can complain to the RBI (www.rbi.org.in) too.