Farmers to avail loans directly from commercial banks

Farmers in Maharashtra who are yet to obtain loans from cooperative banks can now expect them from commercial banks. The state govt will soon take measures to assist Regional Rural Banks (RRBs) utilize the infrastructure of primary agriculture cooperative societies, which would distribute crop loans from commercial banks.To ensure availability of crop loans from commercial banks District Central Cooperative Banks (DCCBs) would function as business correspondents of the Maharashtra State Cooperative Bank.

The commercial banks demanded the government to examine the recovery of stamp duty on loan for amounts more than Rs1 lakh granted for agriculture-allied activities in the state.Presently, according to the government resolution of 1990, stamp duty is exempted only for loans worth Rs 10,000 granted for agriculture-allied activities. State-level bankers’ committee fixed crop loan target of Rs 25,000 cr for 2012-13. Out of this around 55 % would be provided by commercial banks, 35 % by the cooperative banks and the rest by the RRBs.

The government’s endeavor to increase the share of commercial banks has led to rise in the crop loan target. There is an increase of Rs 5,000 crore in the crop loan target compared to 2011-12.

Month: Current Affairs - June, 2012