Express News Service
JAIPUR: In an effort to secure farmer votes in the upcoming elections in Rajasthan, the Ashok Gehlot government has proposed the establishment of a commission to streamline the process of waiving farm loans. The government aims to introduce a special bill during the final Assembly session on August 2. If the Bill becomes law, it will greatly benefit farmers as banks and other financial institutions will no longer be able to seize and auction farmlands from those unable to repay their loans on time.
The Congress is facing flak for not being able to waive farmers’ loans in full as it had promised in the 2018 elections. The Gehlot government rolled out a waiver of Rs 14,000 crore for over 20.56 lakh farmers who had received loans from cooperative banks. Though the Congress has repeatedly asked the BJP government at the Centre to take urgent action for waiving the loans from nationalised, commercial and land development banks, the Centre has not allowed it.
While the nationalised banks come under the Centre’s jurisdiction, cooperative banks function under the state government. Once the commission under the new Bill is formed, it will prevent banks and financial institutions from pressuring farmers to recover loans in cases of crop failure due to any reason. Farmers will have the option to apply to this commission for loan waivers in such circumstances.
The State Farmers Debt Relief Commission will comprise five members, including a chairman who will be a retired High Court judge. Once an area is declared distressed by the Farmers’ Debt Waiver Commission, banks will be prohibited from taking any action to recover loans by selling, confiscating, or auctioning farmers’ properties.
JAIPUR: In an effort to secure farmer votes in the upcoming elections in Rajasthan, the Ashok Gehlot government has proposed the establishment of a commission to streamline the process of waiving farm loans. The government aims to introduce a special bill during the final Assembly session on August 2. If the Bill becomes law, it will greatly benefit farmers as banks and other financial institutions will no longer be able to seize and auction farmlands from those unable to repay their loans on time.
The Congress is facing flak for not being able to waive farmers’ loans in full as it had promised in the 2018 elections. The Gehlot government rolled out a waiver of Rs 14,000 crore for over 20.56 lakh farmers who had received loans from cooperative banks. Though the Congress has repeatedly asked the BJP government at the Centre to take urgent action for waiving the loans from nationalised, commercial and land development banks, the Centre has not allowed it.
While the nationalised banks come under the Centre’s jurisdiction, cooperative banks function under the state government. Once the commission under the new Bill is formed, it will prevent banks and financial institutions from pressuring farmers to recover loans in cases of crop failure due to any reason. Farmers will have the option to apply to this commission for loan waivers in such circumstances.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
The State Farmers Debt Relief Commission will comprise five members, including a chairman who will be a retired High Court judge. Once an area is declared distressed by the Farmers’ Debt Waiver Commission, banks will be prohibited from taking any action to recover loans by selling, confiscating, or auctioning farmers’ properties.
