The Reserve Bank of India has also issued clarity regarding farm loans. If any bank branch insists on CIBIL, then action will be taken against it, warned CM Fadnavis during the 167th State Level Bankers' Committee (SLBC) meeting held at Sahyadri Guest House
CM Fadnavis instructed nationalised banks to make special efforts to meet this year's loan disbursement targets and expand agricultural credit coverage. Pic/X
Maharashtra Chief Minister Devendra Fadnavis on Monday directed banks in state to disburse agricultural loans to farmers without insistence on CIBIL scores, reported the PTI.
A CIBIL score is a credit worthiness mechanism of the Credit Information Bureau, which is used by financial institutions to assess loan applications, with focus on ability to repay.
"If farmers do not receive agricultural loans, it adversely affects the economy and increases farmer suicides. We have repeatedly instructed banks not to ask for CIBIL (score) yet they continue to do so. This must be resolved in today's meeting itself. In the past, FIRs have been filed against such banks. This is a serious issue that banks must handle responsibly," CM Fadnavis said, according to the PTI.
"The Reserve Bank of India has also issued clarity regarding farm loans. If any bank branch insists on CIBIL, then action will be taken against it," warned CM Fadnavis during the 167th State Level Bankers' Committee (SLBC) meeting held at Sahyadri Guest House.
The CM further instructed nationalised banks to make special efforts to meet this year's loan disbursement targets and expand agricultural credit coverage.
During the meeting, a credit plan of Rs 44.76 lakh crore for Maharashtra for the financial year 2025-26 was approved.
Highlighting Maharashtra's leading position in the country, the CM said farmers backbone of the state and agriculture is a vital component of the economy.
"Neglecting agriculture is not acceptable. Hence, nationalised banks must focus on increasing farm loan distribution. With good rainfall predicted by the meteorological department, crops are expected to do well this year. In such a scenario, banks should extend greater support to farmers. Good rainfall boosts agricultural growth, which benefits both banks and farmers," CM Fadnavis asserted, according to the PTI.
Maharashtra is implementing an investment policy for agriculture and banks should actively participate as they have a key role, CM Fadnavis said, adding that an annual investment target of Rs 5,000 crore has been set for the sector.
Banks will benefit by extending more credit to farmers, as agriculture is now seen not just as a supportive sector but as a business venture, he said while asserting that lending institutions must contribute to this transformation.
The state chief minister also directed that banks and and officials who perform well in these schemes must be honoured, while those who do not meet expectations must be named in subsequent meetings to encourage better performance.
CM Fadnavis said that Maharashtra has crossed the USD half-trillion economy mark and is fast progressing toward USD one trillion-dollar. with banks expected to play a key role.
"The state ranks first in foreign direct investment, with Rs 16 lakh crore secured from Davos. Maharashtra is now startup capital and banks should support this sector, which has significant employment potential. Maharashtra ranks first in the MSME sector, which promises investment opportunities. Banks and the government must work together to ensure benefits of Central and state MSME schemes reach intended beneficiaries, thereby strengthening both state and national economies," he said, as per the PTI.
He also urged banks to prioritise tourism and service sectors as well.
Fadnavis stressed on the significant presence of FPOs (Farmer Producer Organisations) in Maharashtra, stating that they can play an important role in agricultural development.
He urged officials to focus on Maharashtra's Gadchiroli district, where industrial networks are being majorly developed.
"Banks should align their priorities with those of the government to ensure holistic development. Implementing central and state government schemes is also the responsibility of banks, essential for achieving financial inclusion," CM Fadnavis said, the news agency reported on Monday.
(with PTI inputs)
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