The Hindu : Karnataka News : Are nationalised banks harassing farmers?

Online edition of India's National Newspaper
Friday, Mar 28, 2008
ePaper | Mobile/PDA Version

Karnataka

Karnataka

Are nationalised banks harassing farmers?

Firoz Rozindar

Most banks violated norms, says KKSS president

Chitradurga: “I took a loan of Rs. 5 lakh from the State Bank of India in 2006 to buy a tractor. The loan was to be repaid in eight years. I have paid Rs. 1.10 lakh. Last year, due to crop failure I could not pay an instalment and sought time till April to pay it (Rs. 50,000). But the bank did not hear me. Instead, it sent some agents to my home at midnight who threatened to take away my tractor. I am neither in a position to repay the loan nor could I give the tractor away. All I am seeking is some time to repay,” Ravindrappa, a farmer from Sultanipur village of Chitradurga taluk, narrated this to presspersons at a press meet here on Wednesday.

According to the State unit president of the Karnataka Kisan Sangharsh Samiti, J.S. Madhukumar, who was accompanied by a few farmers, said that there are many such farmers who have been harassed by nationalised banks while recovering loans. He alleged that most of the nationalised banks violated norms while recovering loans. Dr. Madhukumar said that under the Vidarbha package announced by the Union Government for distressed districts, guidelines had been set for recovery. As per the guidelines, the banks should give one year moratorium to farmers for recovering loan by rescheduling it.

“The banks are openly violating the norms and seizing tractors without even giving proper notices,” he said. He said that about 80 tractors had been seized by the banks in the districts in the past three months.

Dr. Madhukumar said that though farmers like Ravindrappa were beneficiaries of the scheme, the banks were denying them the benefits. He said that the banks were also reluctant in furnishing details about the amount of loan they had rescheduled and disbursed new loan. “Even under the Right to Information Act, they are not ready to give details,” he said.

He also expressed anguish over the district administration not taking up the cause of farmers and directing the banks to adhere to the norms.

He urged the district administration to seriously consider the farmers’ concerns. He threatened to launch a campaign against the banks.

Printer friendly page
Send this article to Friends by E-Mail

Karnataka