Banks should cooperate more to face COVID crisis, says Kerala CM
Jul 30, 2021
Thiruvananthapuram (Kerala) [India], July 30 : Kerala Chief Minister Pinarayi Vijayan on Thursday said banks should cooperate more to face the economic crisis created by the COVID pandemic. The Chief Minister was addressing a meeting of the State Level Bankers' Committee.
"COVID is creating a major crisis in the unorganized sector. The package announced by the Reserve Bank of India in May offers exemptions for non-NPA accounts and borrowers below Rs 25 crore as of March. The state government has asked the Union Finance Minister to declare a moratorium on unconditional interest and penalty interest till December 31, for people and institutions who have been severely affected by the first wave of covid pandemic and natural calamities," said the CM and directed the banks to bring the issue to the notice of Reserve Bank of India.
"The central government has increased the allocation for the Emergency Credit Line Guarantee Scheme under Atmanirbhar package to Rs 4.5 lakh crore rupees. Banks should try to give maximum publicity to this program. The business community should get help from this," Vijayan said.
He noted that there are 37 lakh farmers from Kerala in the PM Kisan program.
"Special care should be taken to provide coverage of these schemes to all farmers, dairy farmers, and fishermen. Agricultural loans should also be provided to those who cultivate on leased land as part of the state government's agricultural development program," he stated.
The Chief Minister further said that banks should provide assistance to the deserving under the Agricultural Infrastructure Fund to provide to arranging post-harvest infrastructure.
"The Department of Agriculture has come forward to form agricultural production organizations as part of the 100-day program announced by the state government. These too should be generously supported," he said in the meeting.
He further said banks should provide the necessary credit assistance to revive the tourism sector as well.
"An approach to the revival of the cashew industry should be taken without delay. Banks should take a favorable approach to loans made by the government through Kudumbasree," he said and asked the banks to take special care to ensure that those facing foreclosure proceedings do not lose their homes under the Sarfaesi Act.
