DCCB should give farm loans irrespective of losses, says Minister

District Central Cooperative Bank (DCCB) have to give loans to farmers. It is the duty of such financial institutions. They can not escape from such responsibilities saying that it could cause them losses, Satish Jarkiholi , district in-charge Minister said in Belagavi.

He was responding to a statement by Anna Saheb Jolle, Belagavi DCCB chairman, that giving loans to farmers meant loss for the bank, but it was continuing to give loans as per government policies.

“I do not know in what sense the chairman made the statement, but I think it is being wrongly interpreted. Whether the BDCC Bank makes a profit or a loss, it must give loans to farmers. The DCC banks were built for the purpose of giving farm loans. They have to follow the directions of the Union and State governments and RBI. Surely, Mr. Jolle and other directors understand this,’’ the Minister told reporters on Friday.

The BDCC bank is a farmers’ bank and it should give loans to farmers. But farm loans, just as other loans, have to be given only as per the directions of RBI and NABARD. It is a different matter that the bank has been giving non-agricultural loans to private persons and companies, as it has to make profits to sustain and grow. Of course, it is not in the hands of the BDCC bank directors to increase the limits of loans given to farmers. It is the domain of institutions like RBI and NABARD, Mr. Jarkiholi said. He said that Chief Minister Siddaramaiah would accept the demands of all legislators who were seeking funds for the development of their constituencies. However, we have not asked for special funds for Belagavi district.

We are hopeful of getting all requisite funds, including those for irrigation projects, the Minister said.

Mr. Jarkiholi refused to respond to claims by Channaraj Hattiholi, MLC and Congress leader that the time had come for Deputy Chief Minister D.K. Shivakumar to become the Chief Minister.