Citizens' Issues
CBI arrests UCO Bank official on graft charge

A senior manager from UCO Bank had demanded Rs15,000 as bribe for sanctioning subsidy of Rs5 lakh as per the state government norms on a loan of Rs17 lakh

Patna: The CEntral Bureau of Investigation (CBI) has arrested an official from UCO Bank for taking bribe of Rs15,000 from a person in Bihar's Munger district, reports PTI quoting sources.

 

Acting on a complaint, the CBI sleuths laid a trap and caught the UCO bank senior manager RN Prasad red-handed as he took the bribe amount at this office in Munger town, CBI Additional Superintendent of Police (ASP) JN Mishra said.

 

The bank official had demanded the money for sanctioning subsidy of Rs5 lakh as per the state government norms on a loan of Rs17 lakh granted to one Gautam Singh, he said.

 

Singh had subsequently lodged a complaint with the CBI and the agency laid a trap and caught the bank official red-handed while taking the bribe, the CBI ASP said.

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FDI in retail may improve loan recovery from farmers

According to a representative body of cooperative agriculture banks federation, increase in income of farmers due to FDI in retail would also lead to improvement in recovery of loans from them

 
Batting for FDI in multi-brand retail, a representative body of Cooperative Agriculture Banks Federation has said it (the decision) will help farmers to fetch better returns and also lead to improvement in recovery of loans from farmers, reports PTI.
 
"Definitely, FDI in retail will result in more income for farmers because big international retailers will be procuring agricultural commodities directly from farmers and pay them more prices to them while eliminating the middlemen," KK Ravindran, managing director of National Cooperative Agricultural & Rural Development Banks' Federation Ltd (NCARDBF) told reporters.
 
NCARDBF also said that increase in income of farmers would also lead to improvement in recovery of loans from farmers.
 
"As farmers will be benefited (because of FDI in retail), we will also be benefited. They (farmers) will return our money and there will be improvement in recovery and thereafter more funds could be deployed in agriculture," NCARDBF Chairman K Sivadasan Nair said.
 
State Cooperative Agriculture and Rural Development banks are functional in 19 states except Maharashtra, Assam, Orissa and Tripura. The total outstanding finance including investment credit to agriculture sector by banks is pegged at Rs15,800 crore with non-performing asset (NPA) level of 20%.
 
The loan recovery of these banks in the country was 45.6% last year, though Ravindran expected that the loan recovery would improve in current fiscal year than that of last financial year.
 
During the conference, the apex body of cooperative lending structure sought from the Centre to turn the cooperative agriculture and rural development banks to fully fledged banks like commercial banks operating in the country.
 
"We want that Reserve Bank of India (RBI) should allow us to function like a commercial bank and then we can accept deposit like banks which can be used for other banking services other than financing to farm sector," Ravindran said.
 
"There are some cooperative banks operating like Punjab, Kerala, Rajasthan, West Bengal which are running efficiently and they can be converted into a fully fledged banks," said Ravindran.
 
With overdue in farm loans for investment purpose rising in most of the states, NCARDBF said it was decided to examine the feasibility of giving relief to farmers (who defaulted due to genuine reasons) by rescheduling their outstanding dues to enable them to pay in easy instalments.
 
Banks would be allowed to take legal recourse in respect of wilful defaulters who avoided repayment in spite of having capacity of pay as part of measures to strengthen the long term cooperative credit structure, it said.
 
The Centre will be urged to reduce interest rate on long-term loans which is currently 10% for farmers through refinance by NABARD or provide interest subvention which is given on crop loans, the body said.
 
It was also suggested to consider the feasibility of issuing revolving guarantee by state governments instead of yearly one and to examine the possibility of waiving the fee for guarantee given for state cooperative agriculture and rural development banks, it added.
 

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COMMENTS

Dr Anantha K Ramdas

4 years ago

Mr Balakrishnan is right.

As long as we have a hoard of moneylenders freely operating in villages and small towns, and charging exorbitant rates of interest, there is really no hope for debt-free farmer. All talk of banks being able to or willing to pump in more credit to the farmer is truly meaningless unless the Banks come forward, take over the loan-sharking money lenders business, and establish direct link with the farmer, any other method is only an exercise futility.

We need the government to take a page of Mother India movie, and totally displace the village moneylender as the first step towards recovery of any sort for the farmer.

R Balakrishnan

4 years ago

FDI has nothing to do. Maybe a tripartite agreement when there is contract farming will help reduce bad loans. In many states, farmers have no intention to repay, having gotten used to the waivers. There is so much peer pressure. If I pay back, you do not and then the loan gets waived, I look like a fool. So better both of us dont pay. This is first hand information

M G WARRIER

4 years ago

Opinions like this make one feel that financial literacy is lacking not only at lower levels. Is it the case that once FDI in retail business becomes a reality, some ‘giant’ foreign retailer will land on the farms and start procuring produce at a price not related to Indian market? The possibility is that the present ‘middlemen’ will become their agents and may, in all probability, make more money.

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