Banks ordered not to issue loan recovery notice to farmers in Karnataka

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Dharwad Deputy Commissioner Gurudatta Hegde has warned banks against issuing notice for recovery of loans and said that action will be taken against them and they will reported to the government, if they fail to follow the government direction.

Speaking at a District Level Review Committee and District Consultative Committee meeting in Dharwad on Wednesday, Mr. Hegde said that the district has already been declared drought-hit by the State government.

“Such being the case, crop loan restructuring has to be done. However, some bank managers have been found to be issuing loan recovery notice to farmers. Action will be taken against such officials,” he warned.

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He asked the officials to release loans to beneficiaries immediately after the respective departments issue recommendations. It is the responsibility of banks to ensure the timely availability of financial assistance to beneficiaries, he said.

District Lead Chief Manager Prabhudev N.G. asked banks to take steps for crediting subsidy amounts to the accounts of beneficiaries immediately after they are released.

Lead District Officer of Reserve Bank of India Ila Sahoo suggested immediate restructuring of crop loans on account of drought.

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Earlier, Mr. Hegde released the Potential Linked Credit Plan Document.

District Development Manager of NABARD Mayur Kamble, Regional Manager Bank of Baroda Vadde Shrihari and others were present.

All bank officials also took an Integrity Pledge as part of the Vigilance Awareness Campaign. NABARD has projected a district credit potential of ₹14,557 crore under priority sector for the district for 2024-25. The district has already achieved credit disbursement of ₹6,642 crore under the priority sector as on September 2023 for the financial year 2023-24.

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Of the total ₹14,557 crore projected for the priority sector, the share of agriculture sector is 41.85%, Micro, Small and Medium Industries sector is 43.46%, housing 4.18%, export credit 3.58%, education 1.12%, renewable energy 0.57% and social infrastructure stands at 0.55%.

The MSME cluster is contributing to the district in a major way for credit disbursement, followed by agriculture sector. Priority sector includes those that are essential for the holistic development of the nation.

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