Haryana banks come in support of farmers opposing forcible deduction for crop insurance

KARNAL: Banks officials have come in support of farmers who are objecting forcible deduction of premium from their accounts as part of the Pradhan Mantri Fasal Bima Yojana.

As per sources, bank officials, especially those of governmentowned banks in the region, have decided not to make deductions from accounts of farmers who have taken loan from the bank but do not want to avail the benefits of the government’s crop insurance scheme.

The bank officials are now asking the farmers to submit a form, along with details of the loan amount and the land they have mortgaged with the bank, mentioning that they are not interested in the insurance scheme.

“If a farmer submits the form opposing the scheme, we do not make the deduction from their account and tell the higher authorities that deductions cannot be made without the consent of the farmer,” said a field officer of State Bank of India, on the condition of anonymity.

He said the decision was taken after the farmers refused to pay pending loans and started holding protests at the banks.

“Also why should we impose the scheme on our customers and deduct money from their accounts for private insurance companies. It will put extra burden on the farmers as well as the bank officials,” he added.

As per the guidelines of the scheme bank officials cannot refuse to deduct the amount.

“If the banks do not deduct premium from a farmer’s account, then the bank will have to pay him compensation incase of crop damage,” said Karam Chand, deputy director of Haryana agriculture department.

“The scheme shall, however, be optional for non-loanee farmers.” he added.