This refers to your front page report “RBI blames banks for Mudra NPAs” (July 22). It is important to note that a majority of those who took Mudra loans were first-time borrowers. It could also be their first tryst with a small business venture. In most cases, it was their first port of call. Keeping these things in mind, it is vital to educate them about the benefits of repayments of loans. A get-together at the district, taluka or village level in the bank premises to make them aware of the importance of CIBIL and the duties of a responsible borrower will yield positive results. A WhatsApp group of all borrowers could be made in each taluka and a request to approach the bank in cases of irregularity of loan repayment will go a long way in developing a positive culture among first-time borrowers.
Young bankers who have joined service recently are brimming with energy and they could be trained to approach Mudra borrowers and understand their problems. Honouring good Mudra borrowers in the branch once a month by inviting the sarpanch and other prominent villagers will infuse a lot of confidence and encourage a repayment culture among Mudra borrowers. Regular CIBIL melas and education camps in colleges, communities halls and social gatherings will surely bring down the number of wilful defaulters.
N K Bakshi, Vadodara
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