NEW DELHI: YSR Congress Party (YSRCP) Rajya Sabha member V Vijayasai Reddy appealed to the Central government to immediately withdraw the stipulation of having CIBIL score as a basis for granting agricultural loans to farmers.
Speaking in the Rajya Sabha during Zero Hour on Thursday, the YSRCP parliamentary leader said that, "It is important for farmers to have timely access to loans for agriculture purposes. Public sector banks have always played an active role in granting loans to farmers. However, the most recent guideline issued by the Reserve Bank of India for banks' lending loans on agriculture, which states the verification of the CIBIL score to extend loans to the farmers is mandatory, is highly objectionable, and should be removed," he said.
He said that because of this RBI regulation farmers in the country were going through difficulties. Vijayasai Reddy also brought to the notice of the government that banks were refusing to grant agricultural loans to the farmers based on transactions recorded in their CIBIL score, which shows them in poor light as defaulters. He expressed his anguish that these stringent guidelines were not in favour of farmers, and were putting them into further hardships.
Explaining further the YSRCP leader said that the agriculture sector in the country is totally dependent on rains and because of sudden natural disasters like drought, excess rains and floods were affecting the livelihoods of 75 to 80 percent of farmers in the State.
He added these adverse conditions affected the crops and farmers were left in a state of despair, as they were unable to pay their debts due this and in turn were projected as defaulters by the banks.
The YSRCP MP questioned how the stipulation of getting agricultural loans based on the farmers' CIBIL score could be reasonable. He therefore, urged the government to take immediate action to remove the CIBIL score regulation for the grant of agricultural loans and enable banks to issue loans to farmers on a credible basis.