Governor P. Sathasivam has lauded the ‘positive and mature response’ of the cooperative sector which was ‘quick to take corrective measures with competitive professionalism’ during the demonetisation measures.
He was speaking after inaugurating the Diamond jubilee celebrations of Kerala State Cooperative Agricultural and Rural Development Bank (KSCARD Bank) and seminar on ‘Kerala Agricultural and Rural Finance Summit 2016’ here on Wednesday.
Over the years, the Governor said the cooperative bodies with banking licence in the State have been extending a stiff competition to the nationalised and scheduled banks in terms of deposit mobilisation and loan disbursal.
Banks, especially those in the cooperative sector, should open avenues for people to be better informed about the various sources of agriculture finance and lending rates.
Even though many farmers are receiving timely help from banking institutions, many undeserving people are getting the benefits that are set aside exclusively for farmers.
“I have come across many availing themselves of agricultural loans when they do not do any farming at all,” he said.
And when it comes to writing off certain loans, it is often such undeserving people who get the benefit.
Mr. Sathasivam said banks in many cities are happy to give agricultural loan on the surety of gold, but when it comes to farmers who cannot afford to give such security, banks show a lot of reluctance.
“This attitude has to change, and banks should become more sensitive to the needs of actual farmers, whose incomes are at times seasonal and subject to matters like natural disasters or climatic uncertainties, which are beyond their control,” he said.
Minister for Cooperation and Tourism Kadakampally Surendran presided over the function. Minister for Agriculture V.S. Sunil Kumar, Chandrabal Singh, MP, chairman, National Co-operative Union, Harsh Kumar Bhanwala, chairman, NABARD, P. Suresh Babu, Managing Director, KSCARDB and Solomon Alex, president, KSCARDB, spoke.
