Punjab's Push for Loan Recovery Sparks Banking Reforms
Punjab Chief Minister Bhagwant Mann has called for swift recovery of loans from defaulter account holders of cooperative banks. This measure aims to ensure seamless lending to agriculture and related sectors. He emphasized the need for government employees and large defaulters to settle their dues, safeguarding financial resources for small farmers.
- Country:
- India
In a bid to bolster the financial health of cooperative banks, Punjab Chief Minister Bhagwant Mann has mandated swift action on recovering loans from defaulter account holders. Mann reviewed the status of cooperative banks, stressing that loan defaulters significantly impede banks' ability to lend effectively to agricultural and allied sectors.
Defaulters, identified primarily as large farmers and government employees, pose a major hurdle, as the Chief Minister highlighted the efficient repayment track record of small and medium farmers. He urged the cooperation department to enhance recovery processes to mitigate the adverse effects of the current situation on the banking system.
Despite a 3 percent interest rebate on timely loan repayments, the current 65 percent recovery rate of crop loans calls for immediate attention. The Chief Minister reiterated that timely repayment helps in reducing interest rates for borrowers, promising no tolerance for discrimination against diligent farmers.
(With inputs from agencies.)
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