Banks warned against forcing farmers to repay crop loan

‘Consequences will be severe if they insist on repayment when the government is waiving loans’

September 25, 2018 10:45 pm | Updated 10:45 pm IST - BENGALURU

Taking exception to some banks reportedly persuading farmers to repay their crop loans despite the government’s decision to waive them, Chief Minister H.D. Kumaraswamy on Tuesday warned such banks of stern action if they indulged in pressure tactics.

He said the “consequences will be severe” if banks repeatedly threaten farmers to repay loans when the government is in the process of waiving them. Briefing mediapersons after a meeting, Mr. Kumaraswamy referred to media reports about a bank in Gadag district pressuring a farmer to repay the entire loan of ₹8 lakh ignoring his request to wait for some time so that the farm loan waiver benefit of ₹2 lakh could be availed. The Chief Minister said he had asked the district administration to book an FIR against the bank manager if the reports were true.

Rajyotsava gift

The final process related to farm loan waiver may commence on November 1 as Kannada Rajyotsava gift, according to the Chief Minister. The government will by then initiate the process of sending individual letters to all the 44 lakh farming families about their loan clearance, he said.

Mr. Kumaraswamy said the Tuesday’s meeting had finalised formats in which the data regarding loans and other details are to be obtained from both the farmers and banks.

Sand shortage

He said he had asked the Chief Secretary to hold a meeting either on September 28 or 29 to look into problems related to shortage of sand in the State.

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