Bhopal: Banks worried over lull in transactions

BHOPAL: Bankers are in trouble as farmers have been avoiding banking transactions, after government’s decision of loan waiver. The banks, cooperative as well as nationalised, are exploring ways to ensure that transactions resume in the bank accounts of farmers.

The farmers have to take fertilisers from cooperative societies next month. These farmers would have to repay loan taken this year to take fertiliser. If they fail to repay loan, then they would face problem in getting fertilizers. The cooperative committees are insisting the farmers to repay the loan taken after April 1, 2018. The government has waived farm loans taken until March 31, 2018.

The farm loans taken after this date would be repaid by the farmers. The farmers are not repaying the loans taken after March 31. The farmers would have to buy fertilizer from cooperative societies in cash which would cause a problem. The cooperative societies are preparing to launch a campaign to get farmers repay their loan and to start transactions in their bank accounts.

This issue also came up during a review meeting on Rabi crops procurement conducted by Chief Minister Kamal Nath on Wednesday. Nath has asked officers to resolve it. It is also under consideration to issue an appeal to farmers to encourage them to initiate banking transactions. The farmers, who are not eligible for farm loan waivers, are also not repaying their loans. ‘

The list of eligible persons for farm loan waiver does not include government servants and income-tax payers. Most of these farmers have not paid their farm loan taken from the banks. Central Bank, general manager, Ajay Vyas, said they are urging the farmers to initiate banking transactions in their accounts. Vyas said problem may arise in coming time if the farmers do not make transactions.

(To download our E-paper please click here. The publishers permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal