Bhopal: Bankers, farmers come face-to-face on loan settlement

BHOPAL: Bankers and farmers have come face-to-face on loan settlement in the state. Farmers are on a warpath over settlement of loan from insurance money transferred to their bank accounts under Pradhan Mantri Fasal Bima Yojana (PMFBY). They said the transaction was done without their consent.

Protest is getting shriller in the state as farmers said their agitation would spread across the state soon. Shiv Kumar Sharma aka Kakkaji, national president of Rashtriya Kisan Mazdoor Mahasangh, said, “Before settlement of bank loans, bankers should take consent from farmers as it is relief money for farmers’ use. March 31 is last date for settlement of loans. So, banks should not be in a hurry. Banks are harassing farmers in the state and state government is mute spectator. We oppose this practice. If banks settle loan from crop insurance money, then farmers will be hand-to-mouth and get nothing. ”

As per bankers, there is already such a provision in terms and condition. Banks disburse loan to farmers after taking their consent that banks will settle loan through their crop insurance money.

A senior manager of Central Bank of India said prior consent was taken from farmers before loan disbursement. So, banks do not need to take consent again from farmers for settlement of loan through crop insurance money. Crop insurance money has been transferred to famers’ accounts. “So, banks are settling loans. Farmers are raising a hue and cry unnecessarily,” he added.

Pradhan Mantri Fasal Bima Yojana aims at supporting sustainable production in agriculture sector by way of providing financial support to farmers facing crop loss and damage arising out of unforeseen events. The scheme aims to stabilise the income of farmers to ensure their continuance in farming, encouraging farmers to adopt innovative and modern agricultural practices.