New Delhi, Jul 24 (IANS): Union Finance Minister Nirmala Sitharaman on Monday said in Lok Sabha through an intervention that all banks whether public or private have been instructed through RBI to deal with poor farmers in a humane and sensitive manner on the issue of repayment of missed loan instalments.

During Question Hour as Minister of State for Finance Bhagwat Karad was replying to a question by a Shiv Sena member on harsh tactics undertaken by banks while dealing with poor loan defaulters, Sitharaman intervened, saying that it is a sensitive matter, which has been brought to the notice of the government quite often.

"A sensitive issue has been raised here. Such instances of banks, whether public or private, indulging in arm twisting tactics while dealing with poor farmers, have been brought to our notice. We have often through RBI, instructed banks to deal with such people in a humane manner,"she said.

There have been instances of representatives of banks even indulging in physical violence while trying to recover loan instalments.