Nagpur Collector warns banks against adjusting drought aid to farmers against loan dues

Farmers hit by drought are receiving assistance from the government, and the district administration has now issued a stern warning to banks to ensure that the aid reaches them directly. If grant money deposited in farmers' accounts is deducted for loan recovery, the banks concerned will face direct action. District Collector Kumar Ashirwad has given clear instructions to the banks in this regard.

Drought has been declared in 304 tehsils of the state this kharif season. All tehsils of Nagpur district are included. The government is providing financial assistance to farmers whose crops were damaged by irregular rain and adverse conditions.

An advance assistance of Rs 5,000 per farmer is being deposited directly in bank accounts in return for crop loss. Beneficiaries are also being given grants through several government schemes. The administration has made it clear that this assistance is meant to ease the difficulties of farmers, so it is essential that they get the benefit without delay.

Banks will not be able to, on their own, credit to loan accounts the amounts received under the Pradhan Mantri Kisan Samman Nidhi, Mukhyamantri Majhi Ladki Bahin Yojana, Namo Shetkari Mahasanman Nidhi, Sanjay Gandhi Niradhar Yojana, Shravanbal Yojana, Indira Gandhi old-age pension, widow and disability pensions, and the Pradhan Mantri Fasal Bima Yojana.

Placing a lien on this money, or holding or freezing it, to recover outstanding loan amounts or interest has also been prohibited. The directive says the grants received from the government are for the beneficiaries' own use and banks cannot take any decision on them on their own.

The concerned banks will be responsible for ensuring that beneficiaries can withdraw the amount immediately and without any obstruction. If any branch withholds assistance meant for farmers or other beneficiaries, or credits it to a loan account, the bank management will be held responsible.

On receipt of such complaints, action against the concerned bank officials and management will be proposed under the provisions of the Disaster Management Act, 2005. Collector Kumar Ashirwad has also directed all banks to immediately issue clear instructions to their subordinate branches.