Farmers seek cancellation of CIBIL requirement for granting loans
The Petitioners said that the circular mandated that all loans, including crop loans disbursed through cooperative societies under the Kisan Credit Card (KCC) scheme, should be granted only after reviewing the applicants' CIBIL credit report.
C. Nethaji of the farmers' association argued that the move could severely impact small and marginal farmers who already face restricted access to institutional credit.
He pointed out, 'While the Tamil Nadu government calculates paddy cultivation costs at ₹76,000 per acre, only ₹36,000 is currently offered as crop loans, pushing farmers to seek loans from traders and middlemen.'
He contended that including cooperative society loans in the CIBIL database would disqualify many farmers from accessing future credit from nationalised banks.
Highlighting Reserve Bank of India's 2017 KCC guidelines, the farmers noted that no provision mandated the use of CIBIL scores to determine eligibility.
Citing a similar stance taken by the Maharashtra Chief Minister, who warned against rejecting farm loans based on credit scores, the petitioners urged the Tamil Nadu Chief Minister M.K. Stalin to revoke the circular in the interest of farmers.
Madurai MP Su. Venkatesan opposing the circular asked why a cooperative society loan for farmers should be based on CIBIL, which was a private entity.
'These are moves targeted at the small and marginal farmers whose farming activities are mostly dependent on the miniscule loans from the banks,' he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
24 minutes ago
- Economic Times
India Inc's equity investment abroad dips 22% in July, RBI data shows
Synopsis Equity investment by Indian companies abroad witnessed a 22% decline in July compared to the previous year, totaling $1.592 billion, according to RBI data. This decrease occurred amidst stricter regulations on outward foreign direct investment. However, total financial commitment increased due to a rise in guarantees issued, reaching $3.512 billion. TIL Creatives Representational Kolkata: Equity investment on foreign shores by Indian companies reduced by 22% in July as compared with the same month last year, Reserve Bank of India data Inc invested $1.592 billion in overseas companies in July against 2.047 billion in the year ago period. Their equity investment was at $2.098 billion in June. The fall in investment volume was seen amid a tighter regulation on outward foreign direct investment. The RBI told compliance heads of banks to inform their corporate clients that if they do not fix their old lapses by August this year, they will have to follow higher scrutiny and tighter rules before making fresh financial commitments financial commitment by India Inc towards overseas companies however stood higher in July as compared to the year-ago position, on account of a rise in guarantees issued. Their total financial commitment overseas stood at $3.512 billion against $3.319 billion seen a year back. Total commitment however dipped when compared with $5.138 billion seen in June this year. Indian companies issued guarantees amounting to $1.614 billion in July against $987 million a year back.
Time of India
39 minutes ago
- Time of India
India Inc's equity investment abroad dips 22% in July, RBI data shows
Kolkata: Equity investment on foreign shores by Indian companies reduced by 22% in July as compared with the same month last year, Reserve Bank of India data showed. India Inc invested $1.592 billion in overseas companies in July against 2.047 billion in the year ago period. Their equity investment was at $2.098 billion in June. The fall in investment volume was seen amid a tighter regulation on outward foreign direct investment . The RBI told compliance heads of banks to inform their corporate clients that if they do not fix their old lapses by August this year, they will have to follow higher scrutiny and tighter rules before making fresh financial commitments outside. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 15 Most Beautiful Women in the World Undo Total financial commitment by India Inc towards overseas companies however stood higher in July as compared to the year-ago position, on account of a rise in guarantees issued. Their total financial commitment overseas stood at $3.512 billion against $3.319 billion seen a year back. Total commitment however dipped when compared with $5.138 billion seen in June this year. Live Events Indian companies issued guarantees amounting to $1.614 billion in July against $987 million a year back.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
RBI receives ₹31,025 cr bids at VRR auction against ₹50,000 cr notified
The Reserve Bank of India (RBI) received bids worth Rs 31,025 crore at the overnight variable rate repo (VRR) auction on Thursday against the notified amount of Rs 50,000 crore. Market participants said the RBI's decision to conduct the auction was to avoid liquidity tightness amid tax payments. Net liquidity in the banking system stood at a surplus of Rs 2.65 trillion on Wednesday, according to RBI data. 'The bidding was along expected lines. The GST outflow is estimated to be between Rs 1 trillion and Rs 1.25 trillion. The RBI must have thought the overnight rate might go beyond the repo rate (5.50 per cent), so it was a fine-tuning operation,' said the treasury head at a private bank. The RBI had conducted two VRR auctions in July when overnight rates were trading near the marginal standing facility (MSF) rate. The weighted average call rate (WACR), the operating target of monetary policy, settled at 5.53 per cent on Thursday, compared with the previous close of 5.47 per cent. Market participants said the RBI would continue with variable rate reverse repo (VRRR) auctions as system liquidity remains in a net surplus of more than Rs 2.5 trillion. 'Even after the outflows, the liquidity is more than Rs 2.5 trillion surplus, so the VRRR auctions will continue,' said a dealer at a state-owned bank. The RBI had received bids worth Rs 1.82 trillion against the notified Rs 2 trillion at its eight-day VRRR auction on 14 August, as banks rolled over the maturing amount of previous VRRR operations conducted on 8 and 11 August. The central bank had accepted the bids at a cut-off rate of 5.49 per cent. The RBI's VRRR operations are intended to absorb surplus liquidity from the financial system and anchor short-term money market rates closer to the policy repo rate. The MSF rate, set 25 basis points (bps) above the policy repo rate, is the ceiling of the liquidity adjustment facility corridor. The standing deposit facility (SDF), 25 bps below the repo rate, is the floor. The policy repo rate is currently at 5.5 per cent.
