Ferozepur February 20, 2019: The Lead District Manager, Ferozepur on representation by Kissan Mazdoor Sangharsh Committee, Punjab – KMSCP, led by Sukhwant Singh Pannu, President have issued directions to all the banks functioning in the district. to immediately return the blank cheques to farmers.
R.K.Gupta, Lead District Manager, Ferozepur, A protest was launched by the KMSCP to stop this unhealthy practice and return the cheques of the farmers. The farmers had been signing these cheques as a part of formality without knowing that there would one day turn into hathkadi (handcuffs) for them.
There had also been instances of filing of criminal cases, under Section 138 of Negotiable Instrument Act, 1938 (NIA) against the farmers for defaulting on loans who were made to sign on blank cheques in violation of the instructions of the RBI. The bulk of these cases involve small and marginal farmers who qualify for the state government’s loan waiver scheme.
In fact, the Reserve Bank of India – RBI, despite instructions, to extend collateral-free agricultural loans of up to Rs. One lakh, these days banks have been taking triple securities from farmers – pledging of land, signing by a guarantor and blank/post-dated cheques.
In some banks, there is an unhealthy practice of obtaining blank cheques from farmers is being followed in spite of the fact that agriculture land is mortgaged as collateral security in Agriculture Advances.
Gupta said it has also been seen that certain banks paste photos of defaulting farmers in their branches and directions have also been issued to stop this practice which is against RBI norms.
Sukhwant Singh Lohka, Press Secretary in the meeting at Chandigarh on February 28, the issue regarding waiving of loans will be strongly presented and in the event of the dilly-dallying attitude of the government, the Jail-Bharo Andolan would be launched from March, 1.