Nagaland police mull loan provision for staff

Nagaland Director General of Police (DGP) Rupin Sharma has initiated a move to shut moneylenders out of the department.

In an order on Wednesday, Mr. Sharma set up a seven-member committee for exploring the possibility of providing short-term loans to police personnel from the Nagaland Police Risk Insurance Scheme (NPRIS).

This was primarily to dissuade constables, officers of lower ranks and other staff from taking loans from private moneylenders.

“From interactions with police personnel across all units of Nagaland police, we came to know that taking loans from private moneylenders at exorbitant interest rates of up to 25% has become a habit for many,” Mr. Sharma said.

It was also learnt that unit commanders and drawing and disbursing offers had sometimes been deducting the principal amount and interest money in cash before demitting the salaries to the bank accounts of the police personnel, his order said.

“The degree of financial literacy was not up to the mark and this has created not only financial problems but also fostered other ills in the management of the force,” the order said.

The Nagaland police department had about 26,000 employees. Each employee contributed a specific amount – currently ₹150 – every month to NPRIS. The monthly deposit in the scheme from regular contributors works out to an average ₹24,500.

“The short-term loan mechanism was being worked out since NPRIS has a system of payouts on retirement or death. This is just the beginning of the process with detailed recommendations expected soon,” Mr. Sharma told The Hindu.

The committee headed by ADG (law and order) Renchamo P Kikon has been asked to submit report by April 25.