The Hindu : Front Page : Scrap ‘no due certificate system’, say ryots

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Tuesday, Jun 30, 2009
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Front Page

Scrap ‘no due certificate system’, say ryots

Banks accused of collecting money for issue of the certificates

HYDERABAD: Farmers’ organisations of major political parties have urged the State government to scrap the practice of submission of no due certificates by farmers to obtain fresh loans from banks.

They expressed concern that banks were collecting money for issue of no due certificates while farmers were forced to make rounds to banks for securing the certificates.

Farmers were, in turn, incurring expenses of over Rs. 1,000 whenever they wanted no due certificates.

Representatives of Kisan Congress, AP Ryotu Sangham, AP Rythu Sangham, Telugu Rythu, BJP’s Kisan Morcha and other organisations called on Chief Minister Y.S. Rajasekhara Reddy and submitted a memorandum to him on the issue.

They wanted the insistence of no due certificates to be done away with as it had lost its relevance after the banking transactions went online.

Dr. Reddy assured the delegation that he would ask bankers not to insist on no due certificates and positively consider the demand for lifting cases registered against farmers during protests staged by them.

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