Banks Advised To Refrain From Farmer Loan Recovery Amid Drought
At a District Level Review Committee meeting in Mysuru, banks were instructed to refrain from pursuing loan recovery from farmers due to the prevailing drought conditions. Deputy Commissioner K.V. Rajendra emphasised that all taluks in Mysuru were affected by drought, urging banks to avoid issuing recovery notices to farmers, even in cases of default. Rajendra stressed the importance of handling loan recovery with care, considering the sensitive issue and the challenges faced by farmers due to drought.
He also encouraged banks to be more lenient with lending and criticised certain banks for not releasing loans under government schemes, warning of potential withdrawal of government deposits from such banks. Mysuru MP Pratap Simha emphasised the need for banks to assess the progress of the annual credit plan and achieve targets to boost economic activity.
The DC expressed dissatisfaction with senior banking personnel who were absent from the meeting, urging corrective measures. The review covered financial inclusion plans, drought relief measures and RBI directives. ZP CEO K.M. Gayatri, Lead Bank Manager V.N. Nagesh, RBI representative Vasanthi Sagar and others were present at the meeting.
