Hit by twin calamities of cyclone Phailin and two phases of flood, the Odisha government asked the banks to extend helping hands in rehabilitation and restoration activities.
Hit by twin calamities of cyclone Phailin and two phases of flood, the Odisha government asked the banks to extend helping hands in rehabilitation and restoration activities.
“We have requested the banks to provide loans to farmers, fishermen, self-help groups and small businessmen in order to help them restore their livelihood,” said U N Behera, additional chief secretary, Finance Department after an emergent meeting of State Level Bankers’ Committee here. Banks were advised to implement RBI guidelines with regard to rehabilitation package in respect of Micro, Small and Medium Enterprises (MSMEs).
Behera suggested the banks to ensure conversion of short- term loan to medium-term loan at the rate of 5 per cent interest per annum and at the rate of 2 per cent per annum to farmers making prompt payment of short-term crop loan. “This will enable the farmers to avail fresh crop loan in view of recent cyclone/flood,” he said.
The state government also advised all banks — commercial banks, regional rural banks and co-operative banks– to restructure/ rephase existing loans of affected areas as per RBI guidelines. The additional chief secretary also stressed on providing loans to victims of calamities for resumption of normal business.
Focusing on Rabi crop loan finance, he advised all banks to achieve the annual target of crop loan and term loan of agriculture, including allied sectors, positively. The meeting also resolved to expedite credit delivery to the affected people by organising special camps by the line departments of the government in coordination with the banks.
All banks were advised to issue necessary instructions to the branch-level functionaries for implementation of action points emerged in the meeting.
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