Bengaluru, February 28: A routine loan recovery by Canara Bank has escalated into a legal standoff after a farmer in Hassan district was summoned to settle an outstanding debt of just INR 9.34. The customer from Sakleshpur, expressed outrage after the bank reportedly refused to return 66 paise in change after he settled the dues with a INR 10 note. Prasanna has now threatened legal action against the institution, citing harassment over a negligible amount and the bank’s failure to settle his own balance.

The dispute highlights a growing friction between rigid banking protocols and ground-level customer relations. The farmer received a notice for the INR 9.34 balance on a loan he believed had been settled. Upon visiting the branch to clear the discrepancy, the cashier allegedly informed him that the bank did not have the 66 paise required to return his change. When the bank staff suggested he "forget" the small amount, Prasanna countered that the bank had spent more on phone calls and paper notices to recover his own minor debt. What Is the Mysore Sandal Soap Controversy? Why Tamannaah Bhatia’s Appointment Is Sparking Cultural Backlash in Karnataka.

Farmer Threatens Legal Action After Canara Bank Demands INR 9.34 Loan Payment

The 66-Paise Conflict

The core of the legal threat rests on the principle of "exact dues." Prasanna argues that if a bank can demand a specific amount down to the last paisa, they are legally and ethically bound to provide the same accuracy when returning a customer's money.

"They called me multiple times for INR 9.34, which is less than the price of a cup of tea," the man told local reporters. "But when it was their turn to pay me 66 paise, they claimed they didn't have change. This is not about the money; it is about the double standard and the mental stress caused to a farmer over a pittance." Karnataka Mobile Ban: CM Siddaramaiah Govt May Restrict Phones for Under-16s Over Mental Health, Drug Concerns.

Demands for Accountability

The farmer has demanded a formal "No Dues Certificate" and has asked the bank to provide a written acknowledgement of the 66 paise they owe him. He plans to approach the Banking Ombudsman and the Consumer Redressal Forum, arguing that such recovery tactics constitute harassment.

Local farmer unions have supported the move, noting that while banks are quick to penalise small-scale borrowers for minor discrepancies, they often overlook larger corporate defaults. They argue that the administrative cost of the recovery process in this instance likely far exceeded the ₹9.34 the bank was seeking to collect.

Canara Bank Issues Statement

Meanwhile, after facing backlash and outrage, Canara Bank has issued a statement on the incident. The bank expressed regret over the inconvenience in an X post.

'Inconvenience Regretted': Canara Bank

"We regret the inconvenience caused. As per records, ₹9.34 was pending in loan account (under NPA status). On receipt of ₹10, the excess amount was handled as per regulatory norms. Since fractional currency below the minimum tenderable denomination cannot be transacted in cash, the balance was credited to SB account. Please be assured that no customer funds remain unreconciled. For any further clarification, kindly DM us. We assure you our best services always, (sic)" the bank wrote.

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(The above story first appeared on LatestLY on Feb 28, 2026 04:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).