Online loan

Minister to Banks: Disburse Crop Loans Faster or You Report to the Center, RBI

Expressing disappointment at the low disbursement of agricultural loans to farmers by commercial and private banks, Cooperation and Marketing Minister Balasaheb Patil on Thursday threatened to send a “poor performance report” of these banks to the government of Union and the RBI.

“So far, only 50 percent of crop loans have been disbursed among farmers. Banks are expected to speed up the process of remitting the remaining 50 percent of the loan for the Kharif season. If the banks continue to delay disbursements, we will send a report to the Center and the RBI, ”Patil told media.

While district central cooperative banks have generally been more successful in disbursing crop loans, commercial banks fall short, he added.

The state government had sanctioned the target of a crop loan of Rs 60,800 crore for 69 Lakh farmers in Maharashtra. “Almost 69% of agricultural land is covered by the Kharif season. Yet banks were only able to disburse 50 percent of crop loans to farmers, which is not acceptable. In this area, commercial and private banks have done worse than cooperative district banks, ”Patil said.

Banks have been urged to provide loans through online apps to avoid crowds amid the Covid-19 outbreak. Patil will hold the next review of crop loan disbursements at the end of July.

Source link