Tamil Nadu - Vellore   

`Honour guarantees to cooperative banks'

By Our Staff Reporter

VELLORE, JAN.10. The Tamil Nadu Cooperative Bank Employees Association (TNCBEA) has urged the Central and State Governments to honour their assurances and make good the losses they sustained on account of loan waiver.

The association attributed the losses to the absence of credit discipline among farmers who nursed hopes of waiver of dues, a feature witnessed for the last 20 years in Tamil Nadu.

The PACBs sustained losses to the tune of about Rs. 800 crores due to the waiver under the Agriculture and Rural Debt Relief Scheme announced by the Centre in 1991. Though the Government announced in Parliament on February 28, 2002 that it would provide recapitalisation, "the State Government has not taken adequate steps to get this amount and distribute it to the PACBs." P. Balakrishnan, general secretary, TNCBEA, in a release issued during a meeting of the executive committee of the Tamil Nadu Primary Cooperative Bank Employees' Federation at Tiruvannamalai on Monday, said the State Government advised cooperative banks not to make any collection, in view of the drought situation.

But it did not compensate the cooperative banks for interest losses.

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