Punjab State Cooperative Bank faces pile-up of Rs 5,300 crore

Chandigarh, May 16: As the Punjab government has given a long rope to farmers in the state over paying back their crop loans, the Punjab State Cooperative Bank has witnessed a huge pile up of over Rs 5,300 crore in recoveries.

The farmers had stopped repaying loans as in the run-up to the state assembly elections, the Congress steered by Capt Amarinder Singh had promised ‘karza kurki khatam’ (end to farm debt and attachment of land). Now when Amarinder has taken over as the CM, farmers are waiting for a waiver.

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Immediately after the Congress government took over on March 14, it extended the deadline for loan recovery to March 31, which was again extended for another three months till June 30.

To further help the farmers, the government is doing away with a clause in the Punjab Cooperative Societies Act which empowers the state to go for kurki (attachment) of land of defaulter farmers. The agenda is expected to be taken up in the meeting of the state cabinet on May 17.

News Source: http://www.hindustantimes.com/