“Government bearing farm loan waiver burden”
Minister of state, Finance, Planning, and Home (Rural), Maharashtra, Deepak Kesarkar said the state finance department is not much directly related to the banking system in India because it is governed by the central government’s finance ministry.
The minister said that Maharashtra is one of the states where every district has got its cyber lab to help people. “One will have to work in coordination with the home department to see how cyber crime has come down in Maharashtra. When we are switching to the digital platform, we have to be very cautious,” he said.
“The role of banks has become much more important than ever because the prime minister wants to provide banking services to the last mile. We should remember the days when the world economy was collapsing and the Indian economy managed to sustain only because of the RBI. We have a very strong banking system. Our only concern is how to reach to the last person of the country. It can be done through technology. India is a huge country and has its own set of problems. When the government came to power in 2014, it was because of the strong will of prime minister Narendra Modi that the banking services reached the masses. Governance plays a major role in everything. Even, Aadhaar was very much there in the previous government, but linking it with all other schemes and taking benefits to the people is something new to this country,” he said.
“Earlier, I was minister of rural development department as well. Around 20,000 out of 27,000 villages had internet connections in Maharashtra,” he said.
He also talked about the farmer loan waiver issue. The minister said that loan waiver is not putting any burden on the banking system, as it is the government which is bearing the burden and it has all the resources. It will overcome that burden. But I would say that our banking system is different from other countries where we are paying interest to the depositors, he stated.
“A farmer will never be a defaulter unless he faces certain tough conditions like low rainfall, then only he becomes a defaulter. Banks are not concentrating on that part and concentrating on regular customers, which need to be changed. Earlier, only district cooperative banks used to give 60-70 percent of loans to the farmers but now the commercial banks are also giving 75-80 per cent of loans to farmers which is a positive sign,” he said.
loan waiver is not putting any burden on the banking system. but it is the government which is bearing the burden and it has all the resources
Deepak kesarkar, Minister of State, Finance, Planning, and Home (Rural), Maharashtra