Banks, states asked to help farmers in distress: Sinha

The state-level bankers' committee and states have been asked to take immediate steps to mitigate the hardship of farmers following destruction of their crops by unseasonal rains and hailstorms, the government said today.
Minister of State for Finance Jayant Sinha said in a written reply in the Lok Sabha that the Reserve Bank has also issued necessary guidelines to banks to provide relief to the crisis-ridden farmers.
"In view of the recent unseasonal rains and hailstorms in several parts of the country, Government has issued advisory to all State Level Bankers' Committees (SLBCs) to take immediate steps to mitigate the hardship of farmers in accordance with the guidelines/instructions issued by RBI/GoI," he said.

The Home Minister, Sinha said, "has advised the state governments...To take utmost care and ensure that all individual beneficiary oriented assistance is necessary/ mandatorily disbursed through the bank account of the beneficiary".
Besides, he said, the central bank "has issued necessary guidelines for relief measures to be taken by banks for the benefit of farmers in areas affected by natural calamities, which inter alia, include conversion and restructuring of agricultural loans in such areas".
Unseasonal rains and hailstorms during February-March damaged crops over 93.81 lakh hectares in several states including Gujarat, Punjab, Bihar and Uttar Pradesh.
Several political parties are demanding loan waiver to help farmers.