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

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Deputy Commissioner of Mandya district Kumar has issued directions to banks and financial institutions against forcible recovery of loans from farmers and the general public in view of the prevailing drought.

With all seven taluks of Mandya district declared drought-hit during the 2026 monsoon season, Mr. Kumar, in a statement here on Monday, said farmers, agricultural labourers, small traders and members of the public in the district are facing severe financial distress.

While Maddur and Pandavapura taluks have been declared moderately drought-affected, the remaining five taluks of 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 exerting pressure on borrowers to pay loan instalments and are resorting to forcible recovery measures,” he said.

Hence, the Deputy Commissioner, citing a letter from the Secretary to the Government, Department of Finance, and the Reserve Bank of India’s Standard Operating Procedure (SOP), said, “All banks, MFIs and housing finance institutions operating across all seven taluks of Mandya district are hereby strictly directed not to undertake any form of forcible loan recovery, harassment, intimidation or unnecessary pressure against borrowers during the period in which the drought situation prevails during the monsoon season.”

Cautioning the financial institutions against forcible loan recovery from borrowers affected by the drought, Mr. Kumar made it clear that the borrowers shall not be subjected to threats, pressure, harassment, humiliation, or any other form of undue pressure for repayment of loan instalments.

The Deputy Commissioner said financial institutions shall also ensure that their recovery staff, agents, and representatives strictly comply with these instructions.

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

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