National cooperative agriculture banks federation (Ncardbf) has come out in support of FDI in the multi-brand retail sector arguing the move would help farmers get better returns as well as enable them to pay bank loans.
As the foreign retailers would be in direct contact with farmers getting agricultural products from them , there would be more money coming to farmers and the role of the middlemen would stand automatically reduced, said Ncardbf MD Mr Ravindran while talking to the press in Chandigarh.
According to Ncardf , when farmers get better income that means their capacity to pay loans would rise.
Sources say state cooperative agriculture and rural development banks are active in 19 states altogether. The banks have put more than 15 thousand crore rupees in various forms and their NPA counts twenty percent, sources claim.
The meet in Chandigarh called upon the central govt to allow the banks to act as commercial banks. It also asserted that if the RBI permitted the banks to work as such it would go a long way in supplying the deficiency in banking services in the country.