RPCB charges higher interest from loan borrowers who consume tobacco

Rajkot People's Cooperative Bank has derived an innovative idea to motivate people to say no to tobacco. It is the sole bank to take a lead in ‘No tobacco’ campaign from the banking sector. In Gujarat it is the first bank to enforce such a policy that discourages tobacco usage at all levels of operations.

Founder Chairman of Rajkot People's Cooperative Bank (RPCB) Shamji Khut told PTI, "As a policy, we charge one per cent higher interest from loan seekers who happen to be tobacco chewers."

He said, "The bank's board had passed a resolution to this effect around two and a half years ago, and since then it’s in force."

Khut said, "Till now only one customer has refused to take loan from us stating that I cannot quit tobacco chewing even if you charge me two per cent higher interest."

It has been over a decade the bank started operations in Rajkot district of Gujarat, RPCB since its set up has implemented a clause that empowers the management to terminate the services of employees who have a habit of taking tobacco. Khut said, "The bank does not recruit any persons who have any kind of tobacco addiction. We at present have strength of 74 employees."

Khut added, "As a rule we can terminate the service of an employee if he is found consuming tobacco in any form. Even a board of director has to submit his resignation if found consuming tobacco."