The Maharashtra government has finally initiated action against those banks which have failed to meet loan target. The state govt has been repeatedly asking them over a period of time to help out the debt-ridden farmers but to little avail.
On Monday criminal proceedings were initiated against about 24 branch managers of nationalized and cooperative banks that have missed the target on providing financial assistance to farmers, reports TOI. Amravati collector Kiran Gitte said he has invoked Section 188 of IPC (disobedience to order duly promulgated by a public servant) for disobeying government orders.
More than 5 million debt-trapped and distressed farmers are in deep trouble due to the on-going resowing of kharip crops and continuous denial of fresh crop loans to the drought hit region, resulting in 8 more innocent vidarbha farmer’s suicides in last 48 hours.
It is one of the strongest actions the state government has taken in recent times against nationalized and district central cooperative banks for failing to release funds to tackle the agrarian crisis, according to the newspaper.
Collectors of Akola, Bhandara, Yavatmal and Chandrapur have also followed the suit. As per guidelines prescribed by the RBI as well as the Centre, financial institutions have a responsibility towards primary sector lending.
Notices under section 188 of the IPC have been served on branch managers of 10 nationalized banks, including Allahabad Bank, Bank of India and Dena Bank, and around 14 cooperative banks, including the Amravati district central cooperative bank.