23:31 GMT +317 January 2020
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    New Delhi (Sputnik): India’s banks have a recoverable bad loan debt of approximately $132.7 billion, according to information given by the federal finance ministry in Parliament. The huge bad loans or non-performing assets (NPA) of banks have resulted in a liquidity crunch for many private and state-run banks.

    While big sharks have escaped any punitive action from cash-strapped banks, a poor man in the western Indian state of Rajasthan has been slapped with a legal notice by the state-run State Bank of India for non-payment of an insignificant 50 paise, which is less than half a cent.

    The bank allegedly pasted a notice on the door of one Jitendra Singh from the Jhunjhunu district of Rajasthan threatening legal action for the defaulted amount. As the account-holder was indisposed, his father went to the bank branch to pay up the "amount" and take a non-due certificate, but the bank allegedly refused to accept the repayment.

    ​“My son Jitendra Singh’s had a backbone injury and he could not go to a camp organised by National Legal Services Authority for loan recovery. So I went to deposit the amount. But the bank officials refused to accept the money", Vinod Singh father of Jitendra Singh said on Saturday (14 December).

    Jitendra Singh has now decided to sue the State Bank of India.

    “The bank officials have sent a notice for 50 paise. My client went to deposit the same to get a No Objection Certificate (NOC), but they refused to deposit it. We will take legal action against them", said Vikram Singh, Jitendra Singh’s attorney.

    Ironically, Jitendra Singh had a "Jan Dhan" bank account in the branch with a balance of Rs. 124 (approximately $1.75)

    The Jan Dhan scheme is a flagship programme of Prime Minister Narendra Modi for financial inclusion of the disadvantaged section of the population in a bid to expand and make affordable access to financial services such as bank accounts, remittances, credit, insurance, and pension,.

    Related:

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    Bank Fraud Worth $13.68 Billion Reported in India, Finance Minister Reveals
    Bad Loans in India Reach Alarming Levels
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    State Bank of India, New Delhi, India
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