Bank employees will court trouble for refusing loans to farmers: Fadnavis
Chief minister Devendra Fadnavis on Monday asked the administration to initiate criminal proceedings against erring staffers of financial institutions for refusing financial aid to farmers in distress.
"Some banks have refused to grant or restructure loans of farmers in distress. If they do not extend financial assistance, then I have asked the district administration to initiate criminal proceedings against the bank managers," Fadnavis said.
Fadnavis reviewed the agrarian crisis and progress of irrigation projects in north Maharashtra in Dhule along with water resources minister Girish Mahajan. "I have asked the heads of leading banks to resolve the dispute. Not only district central cooperative banks, but even commercial and nationalized banks too should step in to resolve the agrarian crisis," the CM said.
"Even if all pending irrigation projects are completed, they will be in a position to provide water to only 50% of the farm plots. For the remaining land, water and soil conservation projects will have to be completed on priority," Fadnavis said. According to reports, a criminal case has been registered in Akola district after a branch manager of a nationalized bank refused a loan to a farmer on "flimsy grounds".
The bank union has condemned the move since it is not binding on a financial institution to disburse loan to a farmer. Farmers' leader Kishore Tiwari said the BJP government will have to draft a two-pronged strategy to tackle the agrarian crisis. "It will have to waive the outstanding loans and ask all financial institutions in the state to provide credit to farmers in crisis," said Tiwari.
"Some banks have refused to grant or restructure loans of farmers in distress. If they do not extend financial assistance, then I have asked the district administration to initiate criminal proceedings against the bank managers," Fadnavis said.
Fadnavis reviewed the agrarian crisis and progress of irrigation projects in north Maharashtra in Dhule along with water resources minister Girish Mahajan. "I have asked the heads of leading banks to resolve the dispute. Not only district central cooperative banks, but even commercial and nationalized banks too should step in to resolve the agrarian crisis," the CM said.
"Even if all pending irrigation projects are completed, they will be in a position to provide water to only 50% of the farm plots. For the remaining land, water and soil conservation projects will have to be completed on priority," Fadnavis said. According to reports, a criminal case has been registered in Akola district after a branch manager of a nationalized bank refused a loan to a farmer on "flimsy grounds".
The bank union has condemned the move since it is not binding on a financial institution to disburse loan to a farmer. Farmers' leader Kishore Tiwari said the BJP government will have to draft a two-pronged strategy to tackle the agrarian crisis. "It will have to waive the outstanding loans and ask all financial institutions in the state to provide credit to farmers in crisis," said Tiwari.
Source: http://timesofindia.indiatimes.com/city/mumbai/Bank-employees-will-court-trouble-for-refusing-loans-to-farmers-Fadnavis/articleshow/47698961.cms
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