Provide Rs 100 crore to NDCC Bank to disburse farm loans: Dist admn to State govt

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Nashik : Taking the initiative to aid an already financially sick Nashik District Central Co-operative Bank (NDCC) to disburse farm loans to close to 81,000 eligible farmers in the district, the administration yesterday sought an immediate assistance of Rs 100 crore from the state government to the district bank, to enable the bank to sanction farm loans of Rs 10,000 each to the farmers.

The Maharashtra government has decided to give an interim assistance of Rs 10,000 to cultivators to enable them to buy pre-sowing inputs for the kharif season.

“The Government has issued orders to make available Rs 10,000 as an interim aid to farmers. Accordingly, by June 30, 2016, there are about 81,000 farmers in the district who owe dues to the district bank and fulfil loan criteria. To provide loans to these farmers, we have demanded Rs 100 crore from the state to give relief to farmers,” said district collector Radhakrishnan B.

The NDCC Bank is facing a severe cash crunch and liquidity crisis, as a result of which it is not in a position to issue crop loans to farmers. The old demonetised currency of the denomination of Rs 1000 and Rs 500 valuing Rs 341 crores, was accepted by the Bank from its account holders. However, the banned currency, as said by the Bank authority has still not been accepted by the RBI. The Bank, therefore, has asked the state government to intervene in this matter.

Besides this, the NDCC Bank has also sought Rs 300 crore as an additional assistance from Maharashtra State Cooperative Bank to carry out its day-to-day transactions at its district branches.

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