Repay on time, benefit in crises: RBI to farmers

By Sakshi Chomwal
Mumbai: The Reserve Bank of India (RBI) is sending a message to farmers — those who are diligent in loan repayments will be considered for relief during natural disasters. The new advertisement campaign from the central bank is aimed at discouraging agri-borrowers, anticipating loan waivers, from holding back on repayments.
The campaign was launched on Monday as part of RBI’s ‘Financial Literacy Week’.The RBI will undertake a mass media campaign, which would be broadcasted on Doordarshan and All India Radio to educate farmers and enable them to become financially literate.
In 2017, several state governments had announced farm loan waivers. Former RBI governor Urjit Patel had spoken out against loan waivers, stating that they undermine an honest credit culture. Bankers have also said that the announcement of loan waivers leads to higher defaults in future.
“We want the farmers to understand that if they borrow money and repay it on time, they will benefit in the future during natural calamities like droughts and famine,” said a senior RBI official. The campaign would also educate farmers about ‘Kisan credit card’ and digital payments.
“We have asked rural bank branches to put up the posters and distribute leaflets,” said the official. The RBI will keep a close watch on this campaign and ensure that the farmers don’t fall prey to the unreasonable demands put forth by the moneylenders when borrowing money.