Govt. to go soft on crop loan repayment

Govt. to go soft on crop loan repayment

 

District co-op banks asked not to take statutory action

In view of the severe drought being witnessed across Tamil Nadu, the State government has decided not to press farmers hard for repayment of loans lent by co-operative banks and co-operative credit societies.

“No statutory action shall be instituted against the member-farmers of co-operative credit societies for recovery of overdue loans and no statutory notice shall be issued to them until further orders,” an official communication from the Registrar of Cooperative Societies to all district central cooperative banks stated.

The communication also insisted that proactive steps be taken to convert more number of short-term crop loans into medium-term loans and urged the banks to take steps to give maximum number of agricultural loans to eligible farmers, whenever farmers approach primary agricultural co-operative credit societies for crop loans.

Decision taken in Dec.

All the regional joint registrars and managing directors of central cooperative banks are requested to ensure that no statutory notice for recovery of loan dues is issued to any farmer-member of any co-operative credit society in the region in the area of operation of the central cooperative bank concerned, it added.

A senior official said, “The decision not to hard-press farmers for repayment of loans was initially taken in December last year soon after the severe drought across the State was realised. We have reiterated the order through the Registrar of Cooperative Societies, since one of the banks seemed to have issued statutory order to a farmer.”

The officer replied in the negative when asked whether the State government has taken any decision on the recent order of the Madras High Court, which ruled that the loan waiver should be extended to all farmers. “The issue is yet to be settled,” he said.

 

 

Source: THE HINDU