DM Issues Stern Warning to NBFCs and Banks, Says Exploitation of Poor Borrowers Will Not Be Tolerated
Strict action will be taken if any poor family is pushed into debt traps or forced out of their homes: DM Dr. Ashish Chauhan
Banks directed to increase investment in district development; absentee banks to face show-cause notices
Dehradun, June 25, 2026
District Magistrate Dr. Ashish Chauhan has adopted a firm stance against irregularities in the functioning of banks and Non-Banking Financial Companies (NBFCs), emphasizing that the interests of the public, particularly economically weaker sections, must be protected at all costs. Chairing the quarterly review meeting of the District Level Review Committee (DLRC) and District Consultative Committee (DCC) at Rishiparna Auditorium on Thursday, the DM directed financial institutions to ensure citizen-friendly services and actively contribute to the district’s economic growth.
He stated that banks should not limit themselves to mobilizing deposits but must also play a meaningful role in promoting local investment, employment generation, and economic development. Warning against arbitrary practices, he said that institutions causing unnecessary hardship to citizens or delaying credit disbursement without justification would face strict action under the law.
Protection of Poor Borrowers a Top Priority
Addressing representatives of NBFCs, Dr. Chauhan stressed that all lending and recovery operations must strictly comply with the guidelines of the Reserve Bank of India (RBI). He expressed concern over cases where financially vulnerable individuals are trapped in unsustainable debt and face the risk of losing their homes and assets.
The District Magistrate made it clear that if any poor family is driven to homelessness due to irregular lending practices, coercive recovery measures, or financial exploitation, and such incidents lead to law-and-order concerns, the administration will take stringent action against the responsible institution.
Show-Cause Notices to Banks Absent from Review Meeting
The DM also expressed displeasure over the absence of representatives from several major banks during the review meeting. No representative from Bandhan Bank, IndusInd Bank, or IDFC Bank attended the meeting, while senior officials from some other banks were also absent.
Taking serious note of the matter, Dr. Chauhan directed officials to issue show-cause notices to all absent institutions and warned that such negligence would not be tolerated in future.
DM Criticizes SBI’s Performance
During the review of the district’s Credit-Deposit (CD) Ratio, the performance of the State Bank of India (SBI) came under scrutiny. Data presented in the meeting revealed that SBI’s CD Ratio in Dehradun stood at only 21.73 percent. In the agriculture sector, the bank achieved only 28.53 percent of its lending target, disbursing loans against a target of ₹277.50 crore.
Expressing concern, the DM stated that the hard-earned savings of local residents should contribute to the development of the district itself. He remarked that banks collecting deposits from local citizens but failing to reinvest adequately in the district’s economy should reassess their priorities. At the same time, he assured full administrative support to banks demonstrating strong performance and commitment to local development.
Swift Disposal of Self-Employment Loan Applications Ordered
The District Magistrate directed banks to ensure timely disposal of loan applications under various government-sponsored self-employment schemes, including the Prime Minister’s Employment Generation Programme (PMEGP), Chief Minister Self-Employment Scheme, Veer Chandra Singh Garhwali Self-Employment Scheme, and the National Rural and Urban Livelihood Missions.
He instructed banks not to keep eligible applications pending unnecessarily. In cases where an application is rejected, the applicant must be informed of the specific reasons so that deficiencies can be rectified and the application resubmitted.
Banks were also directed to coordinate closely with tehsil administrations for the recovery and settlement of pending loan-related cases.
Six Major Banks Below RBI’s CD Ratio Benchmark
Lead Bank Officer Sanjay Bhotia informed the meeting that Dehradun district’s overall Credit-Deposit Ratio reached 42.69 percent as of March 2026, reflecting an improvement of 0.45 percent compared to the previous quarter.
However, six major banks—SBI, Punjab National Bank (PNB), Union Bank, UCO Bank, IDBI Bank, and Bank of Baroda (BoB)—remain below the RBI’s prescribed benchmark of 40 percent.
He further reported that 916 out of 921 ATMs in the district are fully operational, while 95.98 percent of the district’s population has been connected to digital banking and digital payment systems.
Chief Minister Self-Employment Scheme Exceeds Target
The meeting was also informed that under the Chief Minister Self-Employment Scheme, loans have been sanctioned and disbursed to 751 beneficiaries against the target of 650, surpassing the prescribed goal and reflecting strong implementation of the scheme.
The meeting was attended by Chief Development Officer Abhinav Shah, Lead Bank Officer Sanjay Bhotia, RBI Lead District Officer Avneshwar Singh, NABARD District Development Manager Pradeep Ram, along with officials from various departments and representatives of banks operating in the district.
