Kerala CM seeks moratorium on loan repayment

Chief Minister Pinarayi Vijayan on Thursday sought more cooperation from banks for effectively overcoming the pandemic-induced economic downturn.

Addressing the State Level Bankers' Committee (SLBC) here, he urged the panel to press the Reserve Bank of India (RBI) for an unconditional moratorium on loan repayment till December 31, 2021.

In June, the State government had requested Union Finance Minister Nirmala Sitharaman to declare the moratorium to help out the unorganised sector and institutions which are in deep crisis. Banks should bring the matter to the attention of the RBI, Mr. Vijayan said on Thursday.

The Centre has expanded its Emergency Credit Line Guarantee Scheme (ECLGS) for small businesses, announced under Atmanirbhar Bharat, to ₹4.5 lakh crore. Banks should give maximum publicity to it and ensure that the trading community benefits from this scheme.

Mr. Vijayan urged the banks to ensure maximum coverage for farmers, dairy farmers and fishers under the Pradhan Mantri Kisan Samman Nidhi (PM KISAN). Agricultural loans should also be disbursed to individuals who take land on lease for farming, he said. The Chief Minister encouraged banks to provide liberal assistance to agricultural production groups that are being formed under the State Government’s 100-day programme.

Further, he sought the banks’ cooperation for the revival of the tourism and cashew sectors. Banks should also take care to ensure that people who face recovery procedures under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) are not left homeless, the Chief Minister said.

Apart from SLBC representatives, Finance Minister K. N. Balagopal, Chief Secretary V. P. Joy and Additional Chief Secretary (Finance) R. K. Singh were present at the meeting.

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Printable version | Sep 22, 2021 3:04:05 PM |

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