Maharashtra Banks Unable To Offer Fresh Crop Loans To Defaulting Farmers
Money & Banking
Banks in Maharashtra are unable to sanction fresh crop loans to some farmers as rules don’t permit them to extend fresh crop loans in cases where their existing crop loan accounts have turned non-performing, according to United Forum of Bank Unions (Maharashtra).
“The targeted groups of farmers to whom the crop loans are to be disbursed are in dire need of debt relief package from the Central/State Governments. Since their existing crop loan accounts are already non-performing assets (NPAs), Banks are unable to sanction fresh crop loan to these farmers,” said Devidas Tuljapurkar, the Forum’s Convenor for Maharashtra.
Since the farmers’ accounts continue to be NPA in bankers’ books of accounts, rules don’t permit banks to sanction fresh crop loan, he said in a letter to Maharashtra Chief Minister Uddhav Thackeray.
Tuljapurkar referred to a letter written by the State Home Minister asking all the District Collectors to register complaints against bank officials if they don’t sanction crop loans as per rules and regulations.
The UFBU Convenor emphasised that all government announcements need to be translated into proper directions by the competent authorities. In the absence of such clear directions bank officials cannot implement those announcements, he added.
“We have to bring to your notice that banks are governed by the directions issued by the Central Government which is the owner of all Public Sector Banks & regulator — Reserve Bank of India. State Level Bankers Committee also has a defined role to play in implementing the instructions and advisories of the Government.”
“...In some of the cases while sanctioning loans, bank officials are facing some technical difficulties on which solution needs to be found out by amending some of the systems & procedures by appropriate authorities. On this government should ensure that proper directions are issued to the banks by the competent authority,” said Tuljapurkar.
The letter sought to bring to the CM’s notice that almost all banks are facing acute staff shortages and thus are unable to dispose of the loan proposals faster.
Further, branches in rural areas are not getting uninterrupted power supply & BSNL connectivity and therefore branches are unable to function properly.
Published on
June 28, 2020
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Banks in Maharashtra are unable to sanction fresh crop loans to some farmers as rules don’t permit them to extend fresh crop loans in cases where their existing crop loan accounts have turned non-performing, according to United Forum of Bank Unions (Maharashtra).
“The targeted groups of farmers to whom the crop loans are to be disbursed are in dire need of debt relief package from the Central/State Governments. Since their existing crop loan accounts are already non-performing assets (NPAs), Banks are unable to sanction fresh crop loan to these farmers,” said Devidas Tuljapurkar, the Forum’s Convenor for Maharashtra.
Since the farmers’ accounts continue to be NPA in bankers’ books of accounts, rules don’t permit banks to sanction fresh crop loan, he said in a letter to Maharashtra Chief Minister Uddhav Thackeray.
Tuljapurkar referred to a letter written by the State Home Minister asking all the District Collectors to register complaints against bank officials if they don’t sanction crop loans as per rules and regulations.
The UFBU Convenor emphasised that all government announcements need to be translated into proper directions by the competent authorities. In the absence of such clear directions bank officials cannot implement those announcements, he added.
“We have to bring to your notice that banks are governed by the directions issued by the Central Government which is the owner of all Public Sector Banks & regulator — Reserve Bank of India. State Level Bankers Committee also has a defined role to play in implementing the instructions and advisories of the Government.”
“...In some of the cases while sanctioning loans, bank officials are facing some technical difficulties on which solution needs to be found out by amending some of the systems & procedures by appropriate authorities. On this government should ensure that proper directions are issued to the banks by the competent authority,” said Tuljapurkar.
The letter sought to bring to the CM’s notice that almost all banks are facing acute staff shortages and thus are unable to dispose of the loan proposals faster.
Further, branches in rural areas are not getting uninterrupted power supply & BSNL connectivity and therefore branches are unable to function properly.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
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