Loan to farmers: Akhilesh asks regional rural banks to disburse Rs 20,000 crore

“The RRBs have been asked to disburse Rs 20,000 crore as loan to farmers in one year. It will be applicable for 2016-17. This will change the status of farmers and bring prosperity,” said Shiv Singh Yadav, Director General of Institutional Finance, Insurance and Externally Aided Projects.

He added that there is no dearth of money for RRBs to disburse loans to farmers. “They have nearly Rs 60,000 crore as deposits, which is all rural money. They provide only Rs 35,000 crore as loan, so they can easily afford another Rs 20,000 crore,” said Yadav.

The RRBs are promoted and governed by a nationalised bank in every district.

Yadav, however, said RRBs are bound to follow instructions from the state government as well. “We have authority where we can debar that bank from taking deposits in UP. These instructions are for farmers’ welfare and these banks will willingly participate,” he added.

The state government has also chalked out a detailed programme for disbursement of loan to farmers. Disbursement camps will be organised at over 800 blocks with a target to distribute Rs 10 crore, followed by camps at every district headquarters, where Rs 1,000 crore will be handed over. Another mega camp will be held between two divisions with a target to disburse between Rs 500 to Rs 1,000 crore.

“Chief Minister Akhilesh Yadav will personally hand over cheques to farmers in a massive function, which will have nearly one lakh farmers next year,” Yadav said.