Swamy urges PM to give directions to RBI to include farm and agricultural loans in the moratorium restructuring package

BJP leader Subramanian Swamy on Monday urged Prime Minister Narendra Modi to give directions to Reserve Bank of India (RBI) to include agriculture and farm loans to be included in the recent Resolution Framework for restructuring loan moratoriums. In his letter, Swamy pointed out that the recent circular issued by RBI directed the exclusion of agricultural and farm loans from the moratorium restructuring packages. This circular was presented to Supreme Court on the ongoing case on loan moratoriums by the Government of India and Swamy urged Modi to take action against the officers who drafted these kinds of circulars which are against the interest of the farmers.

RBI’s Resolution Framework for Covid-19 on moratorium of loans (DOR.No.BP.BC/3/21.04.048/2020-21 dated August 6, 2020 ) says especially that loans to farmers and agriculture filed will not cover the moratorium package. In the ongoing case in Supreme Court, Government of India as Respondent has produced this backing the RBI to defend itself.

“The Annexure to this notification states vide Para 2 b and c that farm credit and Loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture will not be covered by this Resolution Framework. This means that farmers and similarly vulnerable segments of society are excluded from the benefit of this Resolution Framework in the moratorium package sanctioned due to Covid-19 pandemic,” Swamy pointed out on the anomalies in the RBI’s circular which does not include the farm and agricultural loans from the moratorium restructuring scheme. Swamy’s detailed letter is published below this article.

Swamy urged the PM to give instructions to Finance Ministry and RBI to include the farm and agricultural loans in the moratorium package. “As the matter is before the Supreme Court and listed for hearing on September 10, this requires urgent attention from Government which stands committed to farmers’ welfare first and foremost. I must also urge you to find out who is behind issuing of such circulars or not applying mind whie issuing circulars,” said SwamY