TN govt issues order to enable district central cooperative banks to disburse loans to farmers

The Tamil Nadu state goernment has issued an order to enable district central cooperative banks to disburse loans to farmers. There were complaints that farmers could not resume the Samba seasonal cultivation due to cash crunch. To tide over the crisis, the state cooperative department in its order has asked the primary agricultural cooperative credit societies to arrange opening savings bank accounts in the district central cooperative banks for its members by meeting the mandatory Know Your Customer norms.

style="font-family: Arial, sans-serif; font-size: 10pt;">The order says the loan amount will be credited into the savings account and farmers can withdraw or pay back their loans through it until the cash flow situation eases.

After the demonetization move by the Centre, the primary agricultural cooperative credit societies were not able to disburse farm loans as they are not recognized as banking entities to receive new currencies from the RBI or exchange old notes.