Chandigarh, May 6: Chief Minister Bhagwant Singh Mann today ordered to speed up the recovery process. It targets defaulter account holders of these banks. This aims to bring major reforms in the functioning of Cooperative Bank. These reforms ensure there is no hindrance in lending to agriculture and allied activities During a meeting held today at the official residence of the Chief Minister here, while reviewing the progress of the functioning of Cooperative Banks, the Chief Minister said that defaulters are the biggest obstacle in the development of banks because the money stuck with them hampers financial assistance to other needy people. The Chief Minister said that small and medium farmers always return loans to banks on a priority basis, but it is unfortunate that large farmers are defaulter of cooperative banks. He also said that the government employees who have taken loans from Cooperative Banks to repay their dues immediately. Bhagwant Singh Mann directed the Cooperation Department to adopt an appropriate process to recover loans from defaulter and ensure complete recovery.

  CM Flags Poor Crop Loan Recovery Impacting Cooperative Bank

Expressing dissatisfaction over the recovery of crop loans being only 65 percent, the Chief Minister said this is having a very bad effect on the cooperative banking system. He said that cooperative banks offer a 3% interest rebate for timely repayment of crop loans, yet many farmers fail to repay their loans, which not only forces them to pay higher interest but also deprives them of access to future loans and other benefits. The state government would not accept discrimination with our farmers. During the meeting, it was informed that farmers in the state are given approximately Rs. 8000 crore in crop loans every year through 3523 cooperative societies via cooperative banks. This is provided at an interest rate of just 7%. If the farmer repays on time, they get a further 3% rebate in the interest rate. On the contrary, farmers who do not repay on time have to pay 2.5 % extra interest, which becomes 9.5 percent.

Defaulter  : CM to Honour High-Performing PACS, Raise NABARD Loan Cap Issue

The Chief Minister directed the department to encourage primary agricultural cooperative societies (PACS) with excellent crop loan recovery records. “We will honour these societies in a special way. This approach will highlight them as role models in the cooperative sector.” The meeting revealed that the cooperative societies under the Dhuri circle have a loan recovery rate of 99 percent. The Dhuri circle has emerged as a model. Bhagwant Singh Mann also instructed to organize a function to honour these societies. The Chief Minister expressed concern over NABARD reducing the annual limit of concessional refinance loan for the year 2024–25. He said that Punjab contributes the most to the nation’s food security. This cut in the loan limit has adversely affected the agriculture sector. Bhagwant Singh Mann said he will speak with the NABARD Chairman. He wants to reinstate the loan limit to Rs 3000 crore for the financial year 2025–26. The Chief Minister approved ending the dual leadership system. This change involves the roles of Managing Director (MD) and District Manager (DM) in District Central Cooperative Banks. He stated that there should be a single officer heading the bank. This change will make the functioning more effective. It will also ensure responsibility is clearly fixed. Meanwhile, Chief Secretary KAP Sinha, Chairman The Punjab State Cooperative Bank Ltd. Jagdev Singh Bam, ACS-cum-Financial Commissioner Cooperation Alok Shekhar, Principal Secretary Finance Krishan Kumar, Principal Secretary Food and Civil Supplies Rahul Tewari, Principal Secretary to Chief Minister Ravi Bhagat and Special Principal Secretary Kumar Amit. Additionally, Registrar Cooperative Societies Vimal Kumar Setia and MD The Punjab State Cooperative Bank Ltd. Harjeet Singh Sandhu were also present in the meeting.