CM Alerts the Bankers to Focus on Farm Loans More

Written by

The 195th State Level Bankers’ Committee (SLBC) meeting held on 12th Sept at Vijayawada really saw the CM at his next level. Sri N Chandrababu Naidu gave a piece of his mind to the bankers with subject on bank finance for the farmers of AP.

The CM asked the bankers to choose quickly between their short term gains and striving to be a part of state government’s important initiatives for the farmers.

So far, the state govt has been productive with respect to forming a stable infrastructure and providing the requisite inputs such as power, fertilizers, soil supervision and water supply. The CM stated that bank finance was the only missing link at the given point.

Mr Naidu reminded the group on how the govt had introduced the debt redemption scheme with a mission to help the farmers clear their loans. However, the credit plans that are in vogue by the banks are not matching the existing policies. Because of that, sizable farm lending is unable to reach to the real time farmer groups in the state. If this goes on, the farmers will have no choice except go back to knock on the doors of unreasonable money lenders.

“The bankers are concerned about the short-term gains rather than financial inclusion. This approach is pushing the farmers into a vicious circle of debts apart from hampering the government plans,” he said, adding, “With a good faith I am asking you. If you have any problem and want to stay away from the system, we will work it out. The government will not involve them in any of its activities.” the CM retorted.

This apart, Mr. Naidu was also not very happy about the gold loans that are being offered for agriculture sector. Bankers can sanction gold loan for other purposes but not agriculture. They can do away with these gold loans and lay more emphasis on farm loans and scale of finance, he added.

CM also took this opportunity to constitute committees with bankers and government officials in order to look into the issues relating to the LECs, emu farming, loans to agriculture and allied sectors.

These committees should ideally suggest ways and means to the government. The CM has also decided to involve District Collectors in the SLBC meeting, along with Agriculture Minister P. Pulla Rao, RBI Regional Director R N Dash, Andhra Bank Managing Director and CEO Suresh N Patel, Executive Diretor A K Rath, Nabard CGM VV Satyanarayana, and Ministry of Finance Deputy Secretary A. K. Dogra.



Article Categories:
My City · Vijayawada
Menu Title