At a time when the positivity rate of the coronavirus in the villages has increased significantly, the bank branches in rural areas have been hit by a large crowd as farmers are willing to take advantage of the crop loans, increasing the likelihood of the virus spreading .
Anantapur MP, Talari Rangaiah, has asked Agriculture Minister K. Kanna Babu, Finance Minister Buggana Rajendranath Reddy and the responsible District Minister Botcha Satyanarayana to instruct the State Level Bankers’ Committee (SLBC) to stop the renewal of crop credits. The MP said The Hindu that he had received a positive reply from the ministers in this regard.
“People who come from far away wait in long lines in the bank branches long before opening hours. However, due to the limited working hours of the banks, they are unable to do their job. The number of available employees is also insufficient to deal with the requests of many farmers at the same time, ”said Rangaiah.
Just before the kharif season, farmers pay back their old loans one way or another so they can get new loans. Others are turning to the banks for new loans as the distribution of peanut seeds has already started, stressed the President of Praja Science Vedika, M. Suresh Babu.
“No Social Distancing”
In addition, due to restrictions on public transport and difficulties in selling and receiving payment for their produce on time, farmers have difficulty paying back. Customers eager to meet the deadline are not keeping social distance and some don’t even wear masks, Suresh Babu said.
“Disinfectants are not available in many rural bank branches and are a risk for bank employees. Ten bank employees died from the virus during the second wave of pandemics in the Anantapur district alone, “he said.
The government did not give banks an interest subsidy of 2% per annum and no incentive for an immediate repayment of 1%, which is an additional benefit of 3% if repaid on time to farmers, thus granting loans of up to £ 3 at 4 % Interest per year with timely repayment repayment, he claimed.