Mysore/Mysuru: Following a complaint lodged by farmer leaders on Sept. 6 alleging that Banks were violating RBI guidelines and were harassing farmers who had taken loans, Deputy Commissioner (DC) Dr. Bagadi Gautham chaired a meeting of farmer leaders and Bank representatives at his Office here yesterday.
Sugarcane Growers Association President Kurubur Shanthakumar, explaining the harassment being meted out by farmers told the DC that as per RBI guidelines, Banks were not supposed to ask for surety from farmers who seek loan for Rs. 2 lakh, but a few Banks were demanding surety for the same and even to give Rs. 10,000 loan.
Alleging that a few Banks were also getting the surety properties registered in Sub-Registrar Offices, Shanthakumar said that the Banks were harassing farmers in the guise of loan recovery, which was resulting in farmers pledging gold of their family members for high interest rates to repay the loans when they were already suffering losses due to COVID pandemic. He urged the DC to inform the Banks not to harass farmers and issue an order in this regard.
Replying to the allegations against them, Bank representatives told the DC that they were not getting the properties registered for Rs. 2 lakh loans, but for loans for bigger amount.
Meanwhile, the DC said that there was no need to issue a new order but there was a need to implement and follow the existing RBI guidelines from the Banks. He told the Bank representatives not to violate RBI guidelines but follow the guidelines properly.
The Bank representatives said that they would issue a circular to their branches asking the officials concerned to follow the existing RBI guidelines and not to violate them.
Officials and representatives of various Banks including Co-operative Banks, leaders of various Farmer Associations were present at the meeting.
This post was published on September 30, 2021 6:33 pm