Stop Forcible Recovery From Farmers: Maharashtra CM to RBI
CM Devendra Fadnavis urges RBI to stop microfinance firms from using force to recover loans from farmers amid drought crisis in Maharashtra.
In a significant move to protect the agricultural community, Maharashtra Chief Minister Devendra Fadnavis has engaged with the Reserve Bank of India (RBI) to put an end to the aggressive and forcible recovery of loans from farmers by microfinance companies. This intervention comes at a critical time when the state's farming community is grappling with a severe drought situation.
Crackdown on Microfinance Recovery Tactics
Speaking to the press following a state cabinet meeting, CM Fadnavis emphasized that the government cannot overlook the methods used by private lenders. He explicitly stated that the state has communicated with the RBI to ensure that microfinance institutions cease any form of forced recovery from farmers who are struggling to meet their obligations.
The Chief Minister's directive follows a harrowing incident in the Nanded district, which has cast a shadow over the state's credit recovery practices. A 40-year-old farmer was found dead at the office of a private finance company. According to the victim's family and local villagers, the man had allegedly been kidnapped by recovery agents three days prior over outstanding loan dues.
Responding to the tragedy, Nanded Superintendent of Police Nilabh Rohan confirmed that the authorities have taken swift action, arresting five individuals in connection with the case.
Massive Financial Relief Package
Beyond the regulatory push against coercive recovery, the Maharashtra government has announced a substantial financial safety net for farmers. The cabinet has approved a staggering fund of approximately Rs 1.5 lakh crore dedicated to farmer relief.
As an immediate gesture of support during the festive season, the government is providing Rs 5,000 in direct relief to farmers. CM Fadnavis assured that these funds would begin reaching the bank accounts of the beneficiaries within two days, ensuring they receive the aid before Diwali.
Comprehensive Drought Support
Adding to the relief measures, Deputy Chief Minister Eknath Shinde highlighted that the government is not stopping at the immediate cash transfer. With the official declaration of drought, farmers will be eligible for 12 different types of benefits. These include:
- Loan reorganization to ease the burden of debt.
- Fee waivers.
- Arrangements for essential water supplies.
- General ease in loan recovery processes.
Deputy CM Shinde further clarified that a specific provision of Rs 7,500 crore has been earmarked for this immediate assistance, which will be transferred directly to farmers' accounts. "We will not let farmers' Diwali turn dark," Shinde remarked, emphasizing the urgency of the disbursement.
Echoing the sentiment, Maharashtra Minister Nitesh Rane described the decision to provide the Rs 5,000 assistance as a "historic" step, claiming that no other state has implemented such a measure, marking a decisive move by the Fadnavis-led administration to support the agrarian sector during this crisis.