Kerala: Bank guarantee proves tough

Thiruvananthapuram: Students are finding it difficult to get the bank guarantee because the banks have not yet received any intimation from higher authorities. Bankers have sought amendments to existing regulations for more clarity on the state government directive.  The state government decided to stand guarantee for deserving students from the economically backward classes during admissions.  However, the banks say the government could not stand guarantee for individuals as per the present law.  The State-Level Bankers Committee apprised the government that it requires an amendment to the law.

However, the government is of the view that a gazette notification would do and is going ahead with it.  It would ensure bank guarantee from cooperative banks if the nationalised banks were not willing. Manager of a leading bank on condition of anonymity said he had not yet received any intimation from the regional office.  “At present, branch officials are not in a condition to provide the guarantee without the security of land or other deposit," he told DC. A. R. Aman, a parent, said none of the students whom he knew could get a bank guarantee even after the government made it clear that they would stand guarantee for them.

Kochi based neurologist Dr N. K. Sanil Kumar said there was still lack of clarity on it.  “Many students I know have decided not to go for bank guarantees and opted for courses other than MBBS," he told DC. "The bank guarantee is for just one year. They would have to bear the burden for the rest. The total fee for the five-year course would come up to Rs 55 lakh.” He wonders what would be the social commitment of students paying such a huge amount.  “They would rather think of returns on the investment they made," he said.