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RBI urged to cancel private school loans | India News

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RBI urged to cancel private school loans | India News

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MADURAI: The Federation of Private School Associations (FePSA) has written to Reserve Bank of India (RBI) Governor Shaktikanta Das urging him to cancel the loans obtained by Private schools or extend the moratorium until normality returns.
According to the president of the federation M Arumugam, the financial crisis worsens with each passing day and the banks have begun to notify the auction to the schools that have been wrong.
On Thursday, Simon, the correspondent for a school in the Cuddalore district, informed the federation that the private bank from which he borrowed Rs 1 crore had delivered the auction notice. “He paid 25 lakh rupees in one year, but was unable to pay since closing. There are at least a handful of schools that I know of in Madurai that face the difficult situation but have not talked about it because they want to maintain their dignity, “he said.
The schools have been closed for almost 15 months on instructions from the Union government. Therefore, the government should be responsible for the economic loss of our schools. This was stated by the Supreme Court recently, he said.
“It is the duty of the central government and the RBI to protect us. We are aware that the government is in an economic crisis and it would be impossible to finance private schools that are self-financing, ”he added.
He said something should be done to protect self-financed private schools. The federation said that only 10% of private schools were able to teach classes online and collect 70% of the fees set by the Supreme Court during the shutdown. The remaining 90% of elementary, preschool and small, middle, high school and high schools are struggling, according to him.
Claiming that 90% of schools are struggling to deliver classes as the parents of their students in semi-urban and rural areas cannot afford smartphones, Arumugam said that at least 10% of their schools have been stuck with the collection of zero fees for more than one year. Their plight was compounded by the blanket approval announced by former Prime Minister Edappadi K Palaniswami, as the parents failed to pay the minimum fees set by the Supreme Court.
The federation stated that those who run schools as one of their many businesses managed to navigate in the midst of difficulties, while those who are only in operating schools are trapped in deeper waters. A significant part of the loans obtained by private schools goes to the development and construction of schools. loan.
Copies of the letter have also been sent to the Union’s Finance Minister, Nirmala Sitharaman, and Tamil nadu Prime Minister MK Stalin.

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