The government has asked G.
Ed. to compensate students and families affected by the closure of the BHIM loan scheme.
India has estimated that over 300,000 Indian students have been hit by the BHDI closure, as the B-HIM scheme has not been fully operational.
Under the scheme, Indian students can borrow up to Rs 5 lakh from private lenders to attend college.
The government has said it will seek a compensation of Rs 1,400 crore from the private lenders.
According to a statement, the government will also seek a reimbursement from private banks and lenders for the lost revenue and the inconvenience caused to Indian students and their families by the cancellation of the loan.
As per the statement, Indian Education Minister M Venkaiah Naidu has ordered a comprehensive survey of all the financial information of the private banks, private lenders, colleges, educational institutions and institutions to identify the gaps in their financial reports and financial monitoring, among other things.
In a separate statement, India’s Education Ministry said it has asked private banks to provide the government with information on the number of loans taken out and the repayment of the loans to date, among the steps it is taking.
Last month, the Ministry of Human Resource Development (MHRD) had asked private lenders and institutions like banks and private colleges to file a report on their losses to date.
On October 30, the Centre had directed private lenders in India to register with the department on their books how much they have taken out in loans.
At present, there are around 7,200 private colleges in the country, including private universities and institutions of higher learning, and about 1,600 private universities are not registered with the government.