Commercial banks to go easy on farm loans

Move follows Agriculture Secretary’s plea to the State-level bankers’ committee

In more good news to farmers across Tamil Nadu, which is witnessing a severe drought, commercial banks (which are members of the State Level Bankers’ Committee) that have lent crop loans have decided to go easy on repayments.

According to a communication from the State Level Bankers’ Committee (SLBC) addressed to the Tamil Nadu government, the Reserve Bank of India (RBI) has granted time till July 10 this year for commercial banks to extend relief measures to farmers.

Advantage farmers

“This will hugely benefit farmers, since about 86% of farmers in Tamil Nadu have received loans from commercial banks,” a senior official said. Though the SLBC advised its member-banks to proceed on extending relief measures to farmers soon after the Tamil Nadu government declared all 32 districts as drought affected, it had to take up the issue with the RBI for extension of relief measures till July 10 this year.

The SLBC’s communication was in response to Agriculture Secretary Gagandeep Singh Bedi’s letter, highlighting the plight of farmers and requesting an extension of relief measures.

In his letter to the SLBC, Mr. Bedi had requested the bankers to avoid coercive steps while collecting loan dues since the farmers were under a lot of stress.