Banks to keep tabs on moneylenders | india | Hindustan Times
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Banks to keep tabs on moneylenders

india Updated: Nov 19, 2006 00:09 IST
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THE STATE government has entrusted a few banks with the “policing job” and asked them to identify unscrupulous moneylenders active in the villages. These banks have been directed to provide information about them to the government. The object of the new system is to free the farmers from their clutches.

At a recently held meeting of the bank officials with the officials of the Institutional Finance Directorate it was decided that the banks should not only give loans to the farmers in the rural areas but also check the moneylenders who extended financial assistance to the farmers at high rates of interest, said a senior bank official.

During the meeting three nationalised banks including Allahabad Bank, Bank Of Baroda and United Bank of India were selected for extending agricultural loans and checking the unscrupulous moneylenders. These banks would offer home loan services to the farmers and take care of their fiscal needs.

Under the proposed scheme the three banks had started giving loans to the farmers from today, a senior official of Allahabad Bank said.

These banks were directed to ensure that the private moneylenders did not trap the loan-seeking farmers. The bank officials were also directed to prepare a list of the private moneylenders in the areas under their jurisdiction and submit it to the State Government for initiating legal action against them.

The initiative to help the farmers was taken considering the exploitation of the illiterate farmers by the moneylenders. The government had come to know about the cases where the farmers despite paying back the whole loan amount were shown as creditors by the moneylenders and their children were asked to repay the loans taken by their parents. In some cases the aggrieved farmers even tried to commit suicide, but somehow their lives were saved.

Under the new scheme the banks were preparing the list of farmers who needed money and also of the farmers who were in the clutches of private moneylenders. The banks would get in touch with the needy farmers at their doorsteps and offer them easy agriculture loans as per their paying capacity.