Rs 59 crore of government’s loan waiver money stuck in Yes Bank

AURANGABAD: About Rs 59 crores, one of the instalments that Aurangabad district central cooperative (ADCC) bank limited was supposed to get from the state under the farm loan waiver scheme, is stuck in the Yes Bank after the Reserve Bank of India imposed a withdrawal limit of Rs 50,000 a month on the customers.
The ADCC has shot a letter to the state government requesting them to help clear the situation.
ADCC director Abhijit Deshmukh told TOI, “We have written a letter to the government seeking their intervention in getting our Rs 59 crore of farm loan waiver stuck with Yes Bank. We are hopeful that the government will address the issue at the earliest.”
Only the major banking players such as Yes Bank are direct members of RBI, while the smaller as well as mid-rung ones including the cooperative banks are sub-members of RBI.
The money released from government is routed through its member banks, which further pass it to the sub-member banks.
ADCC has about eight lakh bank accounts, out of which, close to two lakh are loan accounts, with majority of them being crop loans. As on date, ADCC has total outstanding of Rs 900 crores in loans.
Sources in the bank said that they were to get about Rs 350 crores of the crop loan under the new Maharashtra government’s waiver scheme.
The state government announced farm loan waiver of up to Rs 2 lakh each last December. The first and second list of beneficiaries comprising about 21.82 lakh beneficiaries, who would be eligible for the waiver, has been released.
The money was to be disbursed from last week but the RBI restrictions on not allowing withdrawal of more than Rs 50,000 from Yes Bank hit transactions of at least 100 cooperative, mid and lower-rung banks in the state that routed transactions through the bank.