Being a lay person, as far as the banking system of the country goes, I have been both amazed and shocked at how the banks deal with customers of different socio-economic status and influence.

As has been very obvious to people who follow the news, it appears that the banking system has different rules for different folks.  If you are a poor man (especially a farmer) and have borrowed one lakh and don’t repay it, the banks go after you; many a time resulting in the suicide of the hapless soul and complete ruin of the family.

If you are a middle class family and have borrowed one crore and don’t return it, the banks go after you and you lose your collateral, which may be the only home you have, or go to jail and your family will end up on the streets.

If you are a rich man who borrows a hundred crores and don’t return it, the banks grovel before you and beg you to return the loans and will work on softening and restructuring the terms and conditions of the loan.

If you are a super rich person and borrow thousands of crores and don’t return it the banks are totally at your mercy, but you continue to enjoy the privileges of your wealth like the use of the mansions, private planes, yachts and what not. Unfortunately, the person who goes to jail may be the CEO of the bank.

I wish that someone with know-how of the banking system explains this phenomenon, which seems to be totally illogical and loaded against the common man who is waiting to borrow a few thousand rupees to save his life or farm.  Until then I suggest that only the super rich, who wish to borrow thousands of crores, do business with the banks.

Disclaimer - This is my perception and it may be absolutely wrong. I am honestly looking for answers from people 
who understand the system.


Dr. H. Sudarshan Ballal MD, FRCP (UK)
Board Certified in Int Medicine, Nephrology & Critical Care (USA)
Medical Director & Chairman – Medical Advisory Board,
Director – Manipal Institute of Nephrology & Urology




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