Minister hints at debt relief for small farmers

NEW DELHI: Minister of State for Finance Ananth G Geete today called on bankers to extend a moratorium to small and marginal farmers in view of the drought and flood conditions prevailing in the country.
Giving the details, Mr Geete said the Reserve Bank of India (RBI) is working out the details for the banks. He emphasised that credit to agricultural sector should be taken up seriously by the banks as more than 60% of the masses live in rural India.
Clearing the doubts of the bankers about the lapsed `Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002’, Mr Geete said the ordinance will be repromulgated to help bankers recover their assets.
Regarding apprehension about draconian laws to recover money similar to POTA (Prevention of Terrorism Act) brought out by the home ministry, Mr Geete said the ministry does not plan to bring an economic POTA in any form.
He said: ``The industry has to be sustained to support employment and development. But, in the process, public interest too has to be preserved.’’ Mr Geete was referring to the separation of wilful defaulter from other defaulters.
The MoS reiterated the finance minister’s stand of bringing relief to the salaried employees and housewife.
Mr Geete called on banks to fulfil their commitment of 18% of their advances to the agricultural sector that the commercial banks are not fulfilling.
Giving details of the Kisan Credit Card (KCC), Mr Geete said co-operative banks issued 65% of the cards issued while only 35% the cards were issued by commercial banks. This adds to the cost of rural credit, as the cost of credit of co-operative banks is higher than that of commercial banks.