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Maharashtra Home Minister Anil Deshmukh warns criminal action against banks denying crop loan to farmers

The state government has already issued a GR requesting banks to facilitate crop loan to all farmers. The government has agreed to be the guarantor.

By: Express News Service | Mumbai | Published: June 23, 2020 10:14:53 pm
maharashtra news, maharashtra home minister anil deshmukh, banks defying crop loans, farmers, indian express Maharashtra Home Minister Anil Deshmukh.

State Home Minister Anil Deshmukh on Tuesday said financial institutions not giving crop loan to farmers will face criminal action.

“Kharif sowing has begun with arrival of monsoon in the state. But it has come to our notice that many nationalised banks are either delaying or not giving crop loans to farmers. This is a very serious matter,” he said.

“Banks which don’t give crop loan to farmers will invite serious action. We will register criminal cases against such banks,” Deshmukh warned.

The state government has already issued a GR requesting banks to facilitate crop loan to all farmers. The government has agreed to be the guarantor.

“In spite of the directives and assurances, nationalised banks are showing reluctance. We have received complaints. If district administrations bring to our notice the evidence or identify the banks which have denied crop loan to farmers, the Home department will take action,” he said.

However, a senior secretary in the agriculture department said, “The state government has limitations. After all, nationalised banks come under RBI. Therefore, we had sought the Centre’s intervention. The Union finance ministry will have to discuss the issue with RBI.”

In Maharashtra, there are still 11 lakh farmers whose debt has not been cleared following the state government’s decision to stop loan waiver. Moreover, the state government’s decision to stand as guarantor has not been accepted by RBI.

At last month’s state level bankers meeting, Chief Minister Uddhav Thackeray and Deputy Chief Minister Ajit Pawar had emphasised that no farmer should be denied loan waiver.

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