The Opposition in the Rajya Sabha on Wednesday expressed concern over the plight of farmers in the wake of demonetisation claiming they were not getting loans from co-operative banks for rabi crop due to the RBI restrictions on depositing old currency notes of Rs500 and Rs1,000 last year. Condition of Tamil Nadu farmers following a drought in the State also figured in the House and the Government assured that it was taking all steps to mitigate their problems.
Raising the issue of farmers after demonetisation decision on November 8 last year, Sharad Pawar (NCP)said during Zero Hour that stacks of old Rs500 and Rs1,000 notes were lying in District Central Cooperative Banks as they were not allowed to deposit them in currency chests. This led to the banks not disbursing loans to farmers for rabi crops thereby creating hardships for them, he added.
The NCP leader said this situation arose as RBI midway withdrew permission to the district banks to accept demonetised currency. The deposits before withdrawal of the permission were now lying in their chest, he said.
The banks accepted and exchanged the demonetised currency notes between November 10 and 13, 2016, but they were subsequently barred from doing so, leaving them with stacks of junked currency, Pawar said. He said 371 district banks got about Rs44,000 crore worth deposits, including Rs4,600 crore in 31 such banks in Maharashtra.
After permission to receive old notes was withdrawn, the district banks as on November 17, 2016 had deposits worth over Rs8,000 crore including Rs2,700 crore in Maharashtra. Adding to the woes of banks, since the old currency was not considered part of cash balance for determining the cash reserve ratio, the financial health of these institutions was affected, Pawar claimed.
He said he has written to the Prime Minister and the Finance Minister urging them to allow the banks to deposit the money in currency chests. The entire Opposition backed his concern and sought a reply from Finance Minister Arun Jaitley. Deputy Chairman P J Kurien said the members can ask these questions during the debate on Finance Bill later in the day.
Drawing the attention of the House to the condition of Tamil Nadu farmers, T Siva (DMK) said a group of farmers was agitating in the national capital for the last fortnight. He said the farmers were demanding loan waiver in the wake of drought. He claimed that more than 200 farmers had committed suicide.
Associating himself with Siva’s plea, D Raja (CPI) said the country was facing a crisis in the agriculture sector and plight of farmers was “miserable.” Sitaram Yechury (CPM) said if the Government can waive off loans of the rich, it can do so for the farmers too.
Responding to their concerns, Commerce and Industry Minister Nirmala Sitharaman said “The Government is absolutely sensitive and seized of the matter.” Finance Minister Arun Jaitley, Agriculture Minister Radhamohan Singh and Water Resources Minister Uma Bharti had met delegations from Tamil Nadu to take stock of the distress faced by farmers, she said. Moreover, issues like crop insurance was under active consideration, the Minister said.