Lok Sabha Question No. 271 (STARRED), answered on 2018-01-05
Subject: Agricultural Loan
Ministry: FINANCE
Asked by: RAHUL RAMESH SHEWALE, SANJAY SHAMRAO DHOTRE

## Government of India Ministry of Finance Department of Financial Services LOK SABHA

Starred Question No. *271 To be answered on Friday, January 05, 2018/Pausha 15, 1939 (Saka)

## Agricultural Loan

## *271 SHRI RAHUL SHEWALE: SHRI SANJAY DHOTRE

Will the Minister of FINANCE be pleased to state:

- (a) whether the gap between disbursement of agricultural loan by Public and Private Sector banks has widened in the country during each of the last three years and the current year, if so, the details thereof, Bank, State/UT-wise and the reasons therefor along with the reaction of the Government thereto;
- (b) whether the Government has received complaints against private sector banks for denial of or showing reluctance for agricultural loan to the farmers across the country during the said period;
- (c) if so, the details thereof, Bank, State/ UT-wise, along with the action taken/being taken by the Government on such complaints so far;
- (d) the details of loans settled by farmers under one-time settlement scheme along with its impact on Non-Performing Assets of the Banks; and
- (e)  the  steps  taken/being  taken  by  the  Government  to  bring  transparency  in disbursing agricultural loan to the farmers?

Answer The Minister of Finance (Shri Arun Jaitley)

- (a)  to (e) : A Statement is laid on the Table of the House

Statement  referred  to  in  reply  to  parts  (a)  to  (e)  of  Lok  Sabha  Starred  Question No.  †*271  to  be  answered  on  05.01.2018  regarding  Agricultural  Loan  by  SHRI RAHUL SHEWALE and SHRI SANJAY DHOTRE

(a): The percentage share of PSBs to the total agriculture credit disbursed by PSBs and Private Sector Banks for the year 2015, 2016 and 2017 is 76.96%, 75.56% and 74.86% respectively. Further, RBI has informed that each year the loans disbursed has  gone  up  in  each  bank  group.  Bank-group  wise  and  State-wise  details  of agricultural  loans  disbursed  during  the  last  three  years  by  Public  Sector  Banks (PSBs) and Private Sector Banks as reported by Reserve Bank of India (RBI) are given in Annex I and II respectively .

(b) & (c): RBI has reported that it has introduced Banking Ombudsman Scheme for resolution of complaints of customers of banks on deficiency in banking services. 20 offices of Banking Ombudsman receive complaints regarding non-adherence to RBI instructions  on  the  various  grounds  of  complaints  specified  under  the  scheme. However, the information regarding number of complaints received in the offices of Banking Ombudsman on the ground of denial or reluctance by banks in sanctioning agricultural loan to farmers, is not maintained by RBI.

(d):    RBI  has  reported  that  the  details  of  loans  settled  by  farmers  under  one-time settlement  scheme  in  respect  of  Scheduled  Commercial  Banks  (SCBs)  is  not maintained. Data on Gross Non Performing Assets (GNPAs), in respect of PSBs and Private Sector Banks for the last three years and current year upto 30.09.2017, as reported by RBI, is as under:

## (Amount in Rupees crore; Rates and Ratios in Per cent)

|                      | Gross NPAs   | Gross NPAs   | Gross NPAs   | Gross NPAs   |
|----------------------|--------------|--------------|--------------|--------------|
| Bank/Bank Group Name | 31-Mar-15    | 31-Mar-16    | 31-Mar-17    | 30-Sep-17    |
| Public Sector Banks  | 2,79,016     | 5,39,968     | 6,84,732     | 7,33,974     |
| Private Sector Banks | 33,690       | 55,853       | 91,915       | 1,02,808     |

(e): With a view to ensure that all eligible farmers are provided with hassle-free and timely  credit  for  their  agricultural  operations,  the  Government  has  introduced  the Kisan  Credit  Card  (KCC)  Scheme,  which  enables  farmers  to  purchase  agricultural inputs  such  as  seeds,  fertilisers,  pesticides,  etc.  and  draw  cash  to  satisfy  their agricultural  and  consumption  needs.  The  KCC  Scheme  has  since  been  simplified and converted into ATM enabled RuPay debit card with, inter alia, facilities of onetime documentation, built-in cost escalation in the limit, any number of drawals within the limit, etc.