Bank unions have written to Maharashtra Chief Minister Uddhav Thackeray looking for his intervention in getting instructions for banks from competent authorities for sanctioning of crop loans to farmers below the debt reduction plan within the state.
In a letter written to the chief minister on Saturday, United Discussion board of Bank Unions (UFBU) mentioned the state-level bankers’ committee (SLBC) and the Reserve Bank of India (RBI) ought to spell out clear phrases relating to sanctioning of loans to these accounts which can be being coated below the crop loan debt reduction scheme by the state authorities.
SLBC is an apex inter-institutional discussion board to create satisfactory coordination equipment in all states, on a uniform foundation for improvement of the state. The chief minister is chairman of SLBC.
Final week, Maharashtra Residence Minister Anil Deshmukh had warned of felony motion towards banks which can be delaying giving crop loans to farmers.
“All the federal government bulletins have to be translated into correct instructions by the competent authorities and within the absence of such clear instructions bank officers can’t implement these bulletins,” the letter mentioned.
The focused teams of farmers to whom the crop loans are to be disbursed are in dire want of debt reduction package deal from the central and state governments, unions mentioned.
Banks are unable to sanction contemporary loans as guidelines don’t allow giving contemporary loans to non-performing asset (NPA) accounts, they mentioned.
In keeping with the minutes of the final SLBC assembly held on May 29, the RBI had clarified that there is no such thing as a regulatory prohibition on granting further finance to permitted beneficiaries of Mahatma Jotirao Phule Shetkari Karjmukti Yojna (MJPSKY) merely as a result of an account is classed as NPA.
Banks are free to grant contemporary finance as a measure to assist their confused however viable borrowal accounts, the minutes confirmed.
“We want operative tips on this,” UFBU Convenor (Maharashtra State) Devidas Tuljapurkar mentioned.
In a number of the instances, bank officers are dealing with technical points akin to making a cost over farmers’ land and unavailability of stamp papers as a result of lockdown, amongst others, concerned in sanctioning of crop loans and there’s a must resolve these, the letter mentioned.
Banks are already dealing with acute scarcity and so they’re unable to eliminate the proposals in a speedy method as anticipated, the unions mentioned.
Branches in rural areas are dealing with web and energy provide points which can be additionally creating challenges, the letter mentioned.
Unions have requested the chief minister for not taking any motion towards banks for delay in sanctioning of crop loans.
UFBU is an umbrella physique of 9 unions, together with All India Bank Officers’ Confederation (AIBOC), All India Bank Workers Affiliation (AIBEA) and Nationwide Organisation of Bank Staff (NOBW).