The Kerala government has requested banks to consider giving loans at 9 per cent interest rate to self-help groups (SHGs) as a special Covid-19 package. It advised the State Level Bankers’ Committee (SLBC) that in view of the lockdown and related hardships, banks should lend along the lines suggested by it.

Sources said this is being modelled on the Resurgent Kerala Loan Scheme that the SLBC had come up with during the 2018 floods in the state. The government had provided interest-free loans offering subvention of 9 per cent, requesting banks to peg their interest rate at the same level.

The government has asked the SLBC to direct all member banks to take up with their respective authorities the approval of SHG loans at 9 per cent under special dispensation, and get early approval.

Separately, the SLBC told member banks to submit district-wise details of cash management personnel, vehicles, Banking Correspondents/ Bank Mitra, for issuance of special lockdown passes by the government. Restriction on the number of people travelling on board cash management vehicles has been relaxed to four including the driver.

All bank branches should function for full business hours (10 am to 4 pm) till April 4 (Saturday) in view of pension, salary, and other relief disbursements announced. Working hours and the cluster approach of branch functioning shall be reviewed on Saturday and appropriate decision taken for the period thereafter.

In case any spares for automated banking facilities have to be sourced from other states, banks may forward to SLBC a specific request with full details of item, vendor details, and docket number. The government has promised help to ship the spares by air freight. Any restriction on movement of technical support team for automated banking emergencies will also be suitably dealt with.

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