Banks told to enroll farmers for crop insurance schemes

Banks told to enroll farmers for crop insurance schemes

Mangalore Today News Network

Mangaluru, July 01, 2016: The district bankers’ committee, warned banks that they would be held responsible for failure to cover farmers under the Phasal Bima Yojana of the Union government even as the last date for enrollment would not be extended.

Addressing a meeting here, lead bank manager Raghava Yajamanya said that if there was failure of premium payment, banks would be held responsible.

He urged the banks to enroll as many farmers as possible. Banks would have to coax farmers to get enrolled otherwise, they would be made responsible when insurance amount would have to be paid.  Meanwhile, there are complaints of banks levying service charge to issue ‘no-objection certificate’ with regard to farmers’ loans in semi-urban and rural areas. No such fee can be charged as per the Reserve Bank of India guidelines.

Gopinath, Assistant General Manager, RBI Bengaluru regional office, said that though there was 85 per cent achievement in lending towards priority sector, not much growth was visible in MUDRA, education loan and solar loan sectors. Some banks have sent back customers saying MUDRA scheme had been stopped, he said cautioning that the scheme was continuing.