The Hindu : Tamil Nadu News : Collector’s directive to banks on loans for ‘notified crops’

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Friday, Jan 29, 2010
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Tamil Nadu

Tamil Nadu

Collector’s directive to banks on loans for ‘notified crops’

Staff Reporter

Crop insurance cover mandatory
Credit disbursement in farm sector stood at 103 per cent

Tirupur: Collector C. Samayamoorthy has asked the banks in the district to ensure that all crop loans extended towards cultivation of ‘notified crops’ had been covered under National Agriculture Insurance Scheme (NAIS) without fail.

The appeal was made in the wake of reports that overall coverage of farmers under NAIS in the State had been low compared to many other states as well as disbursement made by the banks in that connection.

Mr. Samayamoorthy was speaking at the standing committee meeting of the District Consultative Committee (DCC) for Banking Development organised by the lead bank (Canara Bank) here on Thursday evening.

He reminded the bankers that crop insurance cover was mandatory even in the case of agricultural jewel loans also, for growing notified crops in select areas.

“The concerned financial institution will be held responsible if it has been found that any farmer is deprived of benefits under the NAIS owing to omission of coverage,” he said. Mr. Samayamoorthy said that credit disbursement in agriculture sector in the district stood at 103 per cent during the first half of the current financial year against the ‘proportionate Annual Credit Plan target’ for the period.

Similarly, loan disbursement to small and medium enterprises sector and other priority sector too exceeded the proportional ACP targets for the period and stood at 102 per cent each.

Lead Bank Manager R. Murugesan, NABARD Assistant General Manager G. Santhanam, and senior officials attended.

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