Mangaluru: Reserve Bank of India (RBI) manager Venkataramaiah TN called upon bankers to avoid rejecting loan applications from farmers seeking farm loans. He highlighted the tragic instances of farmers committing suicide due to unmanageable debts from money lenders at exorbitant interest rates. Speaking at the district-level meeting for the development of banks at Dakshina Kannada Zilla Panchayat hall on Monday, he noted that, till December, 456 farmers had ended their lives in the state, with only 354 receiving compensation because they had taken loans from banks, unlike those who had borrowed from money lenders.
Zilla Panchayat CEO Anandh K urged bankers to extend the overdraft (OD) facility for Pradhan Mantri Jan-Dhan Yojana (PMJDY) beneficiaries. Despite banks in the district opening 3,97,46 savings bank accounts under the PMJDY scheme from April 1, 2023, the progress in extending the OD facility was only at 68.9% as of March 31, 2024. Banks were given the target of 10 OD facilities per quarter, but many had not extended OD facilities for even a single PMJDY account holder. He urged bankers to take this responsibility seriously and to raise awareness among customers about social security schemes.
Anandh K also emphasized the need for using Kannada in banks and insisted that all bank staff learn the language to converse effectively with customers.
Lead bank manager Kavitha Shetty reported that under the first tranche of PM SVANidhi, loans were sanctioned to 12,175 beneficiaries, with 192 applications pending disbursement. In the second tranche, loans were sanctioned for 3,282 applications, and in the third tranche, 1,187 applications were sanctioned as of June 10. Bankers noted that the pendency of applications was due to a lack of keen interest from beneficiaries.