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Yogi Adityanath briefs banks on crop loan waiver

Besides asking the bankers that they should not resort to any coercive measures, the chief minister informed them the state government will provide them the loan waiver amount once the budget for 2017-2018 was passed by the state legislature.

lucknow Updated: Jun 29, 2017 16:28 IST
Umesh Raghuvanshi
Chief minister Yogi Adityanath at a meeting of State Level Bankers Committee in Lucknow.
Chief minister Yogi Adityanath at a meeting of State Level Bankers Committee in Lucknow.(Dheeraj Dhawan/ HT Photo)

Chief minister Yogi Adityanath presided over a meeting of State Level Bankers Committee (SLBC) on Wednesday to brief banks about state government’s decision to waive crop loan. 

The meeting comes in the backdrop of a bank branch in Bundelkhand putting up a banner informing farmers that there was no formal communication from the state government about the decision. Some other banks issued or were about to issue notices to farmers asking them to pay the loan.

Besides asking the bankers that they should not resort to any coercive measures, the chief minister informed them the state government will provide them the loan waiver amount once the budget for 2017-2018 was passed by the state legislature. “After the state government’s budget for 2017-2018 is passed, we will transfer the loan waiver amount to you,” Yogi told them. 

He also released a booklet incorporating Uttar Pradesh Government Crop Loan Redemption Scheme for Upliftment and Sustainable Development of Small and Marginal Farmers and Annual Loan Scheme- 2017-2018. “A copy of the booklet incorporating the loan waiver scheme has been made available to each of the banks,” said a senior officer.  

The officer said the scheme had details of the cutoff date, the time schedule for various stages of loan waiver– verification by banks and district level clearance etc. --to ensure that the loans of rightful claimants were waived. “We hope the loan waiver exercise will be complete by August 31, 2017 and loan waiver certificate will be distributed at special camps to the beneficiaries,” said the officer. 

Uttar Pradesh cabinet at its first meeting held on April 4, 2017 had decided to waive crop loans of up to Rs 1 lakh of 86.68 lakh small and marginal farmers. The cabinet had also approved a one time settlement (OTS) scheme to write off non performing assets of additional seven lakh farmers. The final figures of loan waiver though are still being worked out, it is likely to cause a burden of Rs 36359 crore on the state exchequer. 

Yogi expressed concern over declining credit deposit (CD) ratio in the state. He said the state’s CD ratio came down by 9 percent in 2016-2017 in comparison to previous financial year. He also expressed concern over lesser number of bank branches in Uttar Pradesh against the national average. UP has 16583 bank branches. These include 8176 branches situated in rural areas. UP has a bank branch for a population of 12000 against the national average of a branch for 9000 population.