Nationalised banks asking CIBIL scores for farm loans will invite FIRs: Fadnavis

The purpose of the meet was to discuss the problems faced by farmers over crop loans in kharif season.

Speaking at the meet, CM Shinde said, ” The banks should adopt flexibility to accommodate the concerns of farmers. They should come forward to address their problems and provide crop loans.”

The farmers, he said, have to confront multiple challenges due to climate challenges.

Addressing mediapersons after the meeting, Fadnavis said, “The Reserve Bank of India representatives were also called for the meeting. It was categorically conveyed to them that national banks should not make CIBIL scores of farmers as precondition to issue crop loan. If they do, it will invite FIR against them.”

A larger number of farmers despite being eligible are denied crop loans as national banks often make CIBIL scores mandatory for the same.

Fadnavis, who holds Home portfolio, said that the state government has to initiate strict measures to safeguard the farmers rights and interests. “CIBIL scores will not be necessary for crop loans. And if financial institutions insist on it, they will be subjected to FIR.”

The RBI representative, during the meeting, assured that they have given instructions to all bank branches not to refer to CIBIL score for crop loan.

To which Fadnavis replied, “Such assurance is given in every meeting but on the ground branch officials ask for CIBIL score from farmers. They are denied crop loans… Therefore, I warn all banks of filing FIR if they are violating RBI guidelines.”

Over the years it has been noticed that crop loan disbursement target of district cooperative banks is higher compared to nationalised and commercial banks. The low crop loan disbursement by national and commercial banks to farmers is attributed to strict conditions and documents which often result in farmers failing to access crop loan on time.

The kharif sowing has already commenced across Maharashtra since the arrival of monsoon in mid-June. With good monsoon expected this season, kharif sowing, it is believed, would be optimum.

Agriculture minister Dhananjay Munde had said that the area under kharif sowing is likely to increase by 1.50 lakh hectares this season. Accordingly, the state government has made provisions for additional seeds and fertilizers.

The area under kharif in Maharashtra averages to 142 lakh hectares. Last kharif season the area under sowing declined 2.72 lakh hectares.

Fadnavis said, ” With decline in DAP fertilizers across world, nano fertilizers should be promoted among farmers.”
While dwelling on the hurdles faced by farmers in state, Fadnavis said, “There will be strict monitoring of crop insurance companies to ensure farmers are not deprived of assistance.”