Technical glitches in IFSC codes stall DBT payments in Nalgonda

Nalgonda: The government’s loan waiver scheme, once projected as a major relief for farmers, has failed to reach thousands of beneficiaries in the undivided Nalgonda district, triggering widespread distress and criticism over administrative lapses.

The problem arose following the conversion of Andhra Pradesh Grameena Vikas Bank (APGVB) branches into Telangana Grameena Bank (TGB), which led to changes in IFSC codes. Agriculture department officials allegedly failed to update these revised codes while compiling beneficiary data, resulting in outdated banking details being uploaded into the system.

When funds were processed through the Direct Benefit Transfer (DBT) mechanism, transactions were rejected due to mismatched IFSC codes and categorised as technical errors. Officials said that more than 7,000 farmers in Nalgonda district were affected, while across the undivided district, over 15,000 farmers were deprived of benefits amounting to nearly Rs 280 crore. Farmers in villages such as Chinna Suraram, Khajiramaram, Panagal and Chandanapalli said they had been waiting for over a year despite being listed as eligible beneficiaries. With loan waiver amounts not credited, the burden of interest on existing loans has continued to grow.

The situation has been compounded by a lack of coordination between banks and government departments. Farmers alleged that banks blamed the government for non-release of funds, while officials attributed the issue to banking discrepancies, leaving them caught in a prolonged uncertainty.

The delay has also impacted access to fresh crop loans, as banks were reportedly hesitant to extend further credit without settlement of existing dues. This has forced several farmers to turn to private moneylenders, often at higher interest rates.

Adding to the difficulties, some beneficiaries were reportedly denied assistance over issues such as non-availability of ration cards, further deepening their financial strain.

Farmers approached state minister Komatireddy Venkat Reddy and later met former minister T Harish Rao, seeking intervention in the matter. They urged that the issue be raised in the ongoing Assembly sessions to ensure an early resolution.

After nearly 15 months without relief, discontent among farmers has intensified, with many preparing to launch protests. They demanded that the government initiate a special drive to correct IFSC code errors and ensure immediate release of pending funds.