Banks in Kerala should write off the loans given to Wayanad landslide victims instead of deducting their Equated Monthly Installments, or EMIs, from interim relief funds provided by the state government, Kerala Chief Minister Pinarayi Vijayan said on Tuesday, reported The Indian Express.

At least 308 persons were killed due to landslides triggered by heavy rain in the district’s Meppadi area on July 30. The state government had provided Rs 10,000 each to affected familities as compensation.

However, a branch of the Kerala Gramin Bank in Chooralmala recovered outstanding amounts from the accounts of those who had availed loans, reported The Indian Express. EMIs of up to Rs 5,000 were deducted as soon as the relief funds were deposited in people’s accounts, sparking protests.

A woman named Mini Mol, who had borrowed Rs 50,000 from the bank, said that Rs 3,000 was deducted from her relief funds, The Times of India reported. A man named Rajesh from Chooralmala, who lost his house and cattle shed in the landslide, said that Rs 3,400 was deducted from his relief funds by the bank.

At a meeting of the state’s Bankers’ Committee on Tuesday, the chief minister urged banks to support his government’s relief measures by writing off the loans of affected families. Vijayan also said that banks should not expect the state to repay the loans they may write off.

The Chief Minister’s Office also directed the Wayanad district administration to submit a report on the matter, reported The Hindu.

The Wayanad deputy collector, who is also the chief executive officer of the District Disaster Management Authority, has directed Kerala Gramin Bank to return the deducted amounts to the accounts of the victims, reported The Times of India.

State cooperatives minister VN Vasavan described the bank’s move as “cruel”.

“Even if the state-level bankers’ committee has not issued a formal directive in this regard, the bank branch manager could have approached the issue in a humanitarian manner at his own risk, which did not happen,” Vasavan told The Times of India. “It is definitely an indecent act, we will raise the issue with the SLBC [state-level bankers’ committee].”

The Centre holds a majority stake in the Kerala Gramin Bank, with 50% direct ownership and an additional 35% stake through Canara Bank, a Public Sector Undertaking, reported The Times of India. The Kerala government holds a 15% stake in the bank.