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LATEST NEWS UPDATES | Maharashtra asks banks not to divert PM-Kisan money to farmers' loan accounts -Radheshyam Jadhav

Maharashtra asks banks not to divert PM-Kisan money to farmers' loan accounts -Radheshyam Jadhav

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published Published on Mar 2, 2019   modified Modified on Mar 2, 2019
-The Hindu Business Line

Pune: Noticing that some banks had diverted the first instalment of Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme to farmers’ loan accounts, the Maharashtra government has instructed banks to return the money to farmers.

Speaking to BusinessLine, Maharashtra’s Commissioner of Agriculture, Suhas Diwase, said that banks that had diverted the PM-Kisan instalment to farmers’ loan accounts have reversed the transactions after the government’s instructions: “There are strict instructions from the government regarding this. We have instructed banks and a circular has been issued. Banks that had diverted money to loan accounts have returned it to farmers.”

Bharat Barve, Assistant General Manager with Bank of Maharashtra, speaking to BusinessLine said, “The government has made it very clear that farmers must get first instalment of PM-Kisan scheme in hands. But the entire banking system is online and if the farmer’s saving account has court or income-tax attachment or if it is NPA, the deposited money goes to the loan account through the system which functions automatically. So there is a situation some banks might face where the government has asked to give money to farmers, but the system has diverted money to the loan account.” Barve added, “But nowhere bank managers are telling farmers that they cannot get PM-Kisan money. All banks have to issued circulars to branches based on PM-Kisan scheme. Each bank has different software with different command systems and banks are ready with remedial resources to override the system and pay money to farmers”. He said that banks are bypassing the system so that farmers get money in hands.

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The Hindu Business Line, 28 February, 2019, https://www.thehindubusinessline.com/economy/maharashtra-asks-banks-not-to-divert-pm-kisan-money-to-farmers-loan-accounts/article26399463.ece


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