Don't ask for CIBIL scores while disbursing farm loans: CM Fadnavis to banks

Maharashtra Chief Minister Devendra Fadnavis on Monday directed banks in state to disburse agricultural loans to farmers without insistence on CIBIL scores reported the PTIA CIBIL score is a credit worthiness mechanism of the Credit Information Bureau which is used by financial institutions to assess loan applications with focus on ability to repayIf farmers do not receive agricultural loans it adversely affects the economy and increases farmer suicides We have repeatedly instructed banks not to ask for CIBIL score yet they continue to do so This must be resolved in todays meeting itself In the past FIRs have been filed against such banks This is a serious issue that banks must handle responsibly CM Fadnavis said according to the PTIThe Reserve Bank of India has also issued clarity regarding farm loans If any bank branch insists on CIBIL then action will be taken against it warned CM Fadnavis during the 167th State Level Bankers Committee SLBC meeting held at Sahyadri Guest HouseThe CM further instructed nationalised banks to make special efforts to meet this years loan disbursement targets and expand agricultural credit coverageDuring the meeting a credit plan of Rs 4476 lakh crore for Maharashtra for the financial year 202526 was approvedHighlighting Maharashtras leading position in the country the CM said farmers backbone of the state and agriculture is a vital component of the economyNeglecting agriculture is not acceptable Hence nationalised banks must focus on increasing farm loan distribution With good rainfall predicted by the meteorological department crops are expected to do well this year In such a scenario banks should extend greater support to farmers Good rainfall boosts agricultural growth which benefits both banks and farmers CM Fadnavis asserted according to the PTIMaharashtra is implementing an investment policy for agriculture and banks should actively participate as they have a key role CM Fadnavis said adding that an annual investment target of Rs 5000 crore has been set for the sectorBanks will benefit by extending more credit to farmers as agriculture is now seen not just as a supportive sector but as a business venture he said while asserting that lending institutions must contribute to this transformationThe state chief minister also directed that banks and and officials who perform well in these schemes must be honoured while those who do not meet expectations must be named in subsequent meetings to encourage better performanceCM Fadnavis said that Maharashtra has crossed the USD halftrillion economy mark and is fast progressing toward USD one trilliondollar with banks expected to play a key roleThe state ranks first in foreign direct investment with Rs 16 lakh crore secured from Davos Maharashtra is now startup capital and banks should support this sector which has significant employment potential Maharashtra ranks first in the MSME sector which promises investment opportunities Banks and the government must work together to ensure benefits of Central and state MSME schemes reach intended beneficiaries thereby strengthening both state and national economies he said as per the PTIHe also urged banks to prioritise tourism and service sectors as wellFadnavis stressed on the significant presence of FPOs Farmer Producer Organisations in Maharashtra stating that they can play an important role in agricultural developmentHe urged officials to focus on Maharashtras Gadchiroli district where industrial networks are being majorly developedBanks should align their priorities with those of the government to ensure holistic development Implementing central and state government schemes is also the responsibility of banks essential for achieving financial inclusion CM Fadnavis said the news agency reported on Mondaywith PTI inputsatOptionskeyd0ddb8ef8f1a62a8cdd22fac27fc5ea7formatiframeheight90width728params