Farming work at Georai Tanda village. The lack of rainfall has put the kharif crop at risk in most of Maharashtra
The decision came in a special review meeting held on Tuesday in Pune after drought had been declared in 265 talukas in state. As per Reserve Bank of India (RBI) guidelines, agricultural loans in areas affected by a declared natural calamity, including drought, can be restructured where crop loss is 33% or more. You Can Also Check: Gold Rate in Pune | Silver Rate in Pune | Bank Holidays in Pune | Public Holidays in Pune | Petrol Price in Pune | Diesel Price in Pune | CNG Price in Pune | LPG Price in Pune Stay updated with the latest Pune news.
Prabhat Kiran, SLBC Maharashtra chairperson, said all member banks should implement the relief measures effectively in accordance with RBI guidelines. The extent of repayment relief depends on crop loss. RBI rules specify a three-month deadline from the date of declaring a natural calamity to implement such relief measures. As per a statement by the Bank of Maharashtra, which acts as the convener of the panel, the move was aimed at ensuring continued access to credit for the upcoming Rabi season. Senior officers of RBI, NABARD , state govt departments, public sector, private sector and regional rural banks, along with district managers from across state attended the meeting. The committee reviewed the process for identifying eligible loan accounts, the restructuring procedure, implementation timelines and other regulatory requirements under the RBI guidelines. Ashish More, joint secretary, department of financial services, govt of India, directed banks to complete the restructuring of eligible agricultural loan accounts within the stipulated timeline. Chief secretary Rajesh Agrawal urged banks to act sensitively and promptly to provide relief to drought-affected farmers. The committee has directed these participating banks to provide new and/or additional credit to eligible farmers after restructuring their loans. The additional lending was intended to meet requirements for the upcoming sowing season, agricultural and allied activities and working capital. The banks will take steps, including rescheduling loan repayment, conversion of overdue interest into a separate loan facility, among other required measures. Agricultural borrowers affected by drought will have their loan accounts restructured if they meet eligibility criteria prescribed by RBI. Download the TOI App.
Loans that had already been overdue before the calamity have generally been excluded from restructuring under the applicable provisions. Pune: State Level Banking Committee (SLBC) on Tuesday decided to restructure agricultural loans in drought-affected areas to ensure immediate financial relief to farmers.