The moratorium on loan recovery proceedings against farmers in the State, which expired on July 31, has been extended till December 31 this year.
The decision was finalised at a meeting convened by Chief Minister Pinarayi Vijayan with RBI officials and bankers here on Wednesday. The Reserve Bank of India (RBI) had written to its regional office here stating that the State Level Bankers' Committee (SLBC) can decide on the State government's request to extend the moratorium.
In reality, the number of farmers whose loans were rescheduled before the deadline set for the purpose ended on December 31, 2018, is relatively low. Nonetheless, Wednesday's decision would also cover farmers whose loans had not been rescheduled, Agriculture Minister V.S. Sunil Kumar said.
A decision was taken on Wednesday enabling them to apply for fresh loans after remitting the interest amount on the outstanding loan amount, the Minister said.
Recovery proceedings would not be initiated against defaulters without the approval of district-level subcommittees jointly formed by the SLBC and Agriculture Department.
Now operational in Idukki and Wayanad districts, the subcommittees would be formed in other districts within a week, the Minister said. “'Recovery notices issued by banks must be cleared by the subcommittee first,” Mr. Sunil Kumar said.
Chief Minister Pinarayi Vijayan and Mr. Sunil Kumar had held discussions with the SLBC on June 25 in Thiruvananthapuram on the need to extend the moratorium. On July, Mr. Sunil Kumar had also met RBI Governor Shaktikanta Das seeking an extension.
