Yog Raj Sharma
The North News
Shimla, September 26
“The repayment capacity of farmers, MSMEs and other borrowers has been severely affected by the recent disaster, and banks must step in to provide relief,” Himachal Pradesh Chief Secretary Prabodh Saxena said on Friday. He was speaking at a state-level bankers’ committee meeting in Shimla, convened to discuss support for people whose lives and businesses have been hit by floods and landslides.
Saxena noted that banks in the state manage about 6.5 lakh agricultural accounts and two lakh MSME accounts, many of which are struggling with repayments. A proposal to reschedule loans for disaster-affected borrowers was placed before the committee.
“The state has suffered extensive damage. Many families have lost their homes and businesses have come to a standstill. Rescheduling repayments would give them breathing space,” Saxena said.
The committee decided that banks will forward the proposal to their head offices. A panel led by the Reserve Bank of India’s Regional Director will review the technical aspects and issue recommendations within a week. UCO Bank is also expected to circulate guidance on the proposed relief measures.
