“Gov­ern­ment bear­ing farm loan waiver bur­den”

Governance Now - - CONFERENCE REPORT -

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

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