Banks told not to force farmers to repay loans

Sangareddy: Minister for Irrigation T Harish Rao on Friday warned the banks against forcing the farmers to repay 50 per cent balance loan amount for securing fresh farm loans.

He sternly told the bankers not to insist on farmer repaying the remaining loan amount, which was promised to be written off by the government.

Speaking at a meeting of bankers with district officials and people’s representatives at the Collectorate here, Harish Rao asked the banks to follow the guidelines issued by the Reserve Bank of India (RBI). The banks should fulfil their targets in respect crop loan waiver scheme.

The Minister and the people’s representatives expressed their anger over banks deducting interest amount from the money paid to them as part of second phase of loan waiver scheme.

He also warned a bank that business would not be given to it if it insisted on farmers paying balance of amounts of loans. The bank officials were asked to issue fresh loans to farmers.

The Minster sought details of how many banks were operating from town though in fact they were supposed to work from one or other village.

He felt that there was a scope for opening 24 more bank branches in the district as the workload for existing 40 to 50 branches had increased.

MP Kotha Prabhakar Reddy, MLC Ramulu Naik, MLAs Chinta Prabhakar and Ch Ramalinga Reddy, District Collector Ronald Ross were among those who were present at the review meeting.

The Minister also reviewed the progress in implementation of free housing, land distribution to landless Dalits, construction individual toilets and other welfare schemes.