Joshi asks banks to follow RBI guidelines properly

Union Minister Pralhad Joshi urges banks to follow RBI guidelines, not make CIBIL rating mandatory for farmers' crop loans.

Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi has said that some banks are unnecessarily making CIBIL rating mandatory for farmers to avail themselves of crop loans and asked them to follow the RBI guidelines properly.

He was chairing a district-level review committee and district-level consultative committee meeting in Dharwad on Friday.

Mr. Joshi said that banks should not unnecessarily trouble farmers and delay disbursement of loans citing rules that are not applicable for crop loans.

Without collateral security, crop loans up to ₹10 lakh can be given to farmers and banks should strictly follow the RBI guidelines, he said.

The Union Minister asked the officials and banks to ensure proper and effective implementation of the Central government-sponsored schemes and programmes by disbursing loans as per targets.

Lead Bank Manager Prabhudev N.G. said that the district had a target of disbursing ₹610.8 crore crop loan by June-end and they have disbursed ₹650.34 crore recording an achievement of 106.47%.

In micro, small and medium enterprises category, the district has recorded an achievement of 140.51%. It was 147.8% of the target in the other priority sector advances, he said and added that they have achieved 147.7% target in the non-priority sector.