Banks cautioned against loan recovery from farmers

November 28, 2023 08:10 pm | Updated 08:30 pm IST - MYSURU

Mysuru MP Pratap Simha, DC K.V. Rajendra, ZP CEO K.M. Gayatri and others released the district potential linked credit plan at the DLRC meeting in Mysuru on Tuesday.

Mysuru MP Pratap Simha, DC K.V. Rajendra, ZP CEO K.M. Gayatri and others released the district potential linked credit plan at the DLRC meeting in Mysuru on Tuesday. | Photo Credit: M.A. SRIRAM

Banks in Mysuru district were instructed to desist from loan recovery from farmers given the prevailing drought in the region.

At the District Level Review Committee meeting of various banks held here on Tuesday, Deputy Commissioner K.V. Rajendra said that all taluks of Mysuru district were drought-affected and hence the banks should not issue notice on loan recovery to the farmers even if there were defaulters. “It is a sensitive issue and though loan recovery is important, it has to be handled with care without harassing the farmers,” said Mr. Rajendra.

“Don’t put undue pressure on farmers for loan recovery and be sensitive towards their predicament and situation arising out of drought,” said Mr. Rajendra. “In case farmers seek a one-time settlement do not discourage them,” he added, and pointed out that it was a common complaint from farmers that banks do not encourage them to make a one-time settlement. He urged banks to lend more and took exception to certain banks not releasing loans to beneficiaries under various government schemes and cautioned them that the government deposits from such banks would be withdrawn.

Mysuru MP Pratap Simha said the banks should assess the progress of the implementation of the annual credit plan for the district. He and the DC took exception to many of the banks not meeting the targets. ‘’You should be liberal in lending more loans so that there was growth in economic activity,” said Mr. Rajendra.

The DC also took exception to senior banking personnel abstaining from attending the district level meeting. He called upon the lead bank manager to ensure that corrective measures were taken. The bank representatives subsequently review the progress of financial inclusion plan, drought relief measures and implementation of RBI directives on it besides other subjects listed under the agenda.

ZP CEO K.M. Gayatri, Lead Bank Manager V.N. Nagesh, RBI representative Vasanthi Sagar and others were present.

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