Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has urged bankers to extend support in implementing government welfare schemes and strengthen the rural economy.
Addressing the 213th State Level Bankers Committee (SLBC) meeting on Friday, the Chief Minister asked the bankers to focus on doubling farmers’ income, reducing investment costs, providing proper market facilities for produce, and to support farmers at the time of natural disasters.
He said the government has started various initiatives to reduce the investment cost to farmers. It has been providing financial assistance of ₹13,500 per annum through Rythu Bharosa Scheme. Fifty per cent of farmers in the State have less than half a hectare and 80 percent of investment cost to those farmers would be covered through this scheme.
He said ₹7,500 is credited to the bank accounts of the beneficiaries before kharif in May, ₹4,000 in October and ₹2,000 is given to the farmers for Sankranti in January. The State government has paid all arrears of previous government pertaining to interest-free loans and is encouraging farmers to take interest free loans. The government is also paying crop insurance premium for farmers.
He urged the bankers to provide loans to tenant farmers as they have been given Crop Cultivated Right Cards (CCRC).
The Chief Minister said the Self Help Groups have deposited ₹7,500 crore in their accounts for 2020–21. However, the interest paid by banks is only 3 per cent, but the same banks charge 11- 13 per cent interest.
G Rajkiran Rai, SLBC President and MD of Union Bank of India said the banks have given ₹2,80,519 crore as loans in Primary sector as on September this year and it’s 64.60 percent of total loans. Loans to the agricultural sector stood at ₹1,85,075 crore and this is 42.61 percent of the total loans.