Farmers in Srivilliputtur took a stand against new regulations imposed by cooperative banks, which require members to provide CIBIL (Credit Information Bureau of India Limited) scores to access farm and cattle maintenance loans. This protest, organized by the Tamilaga Vivasayigal Sangam, occurred on Thursday in front of the Deputy Registrar of Cooperatives’ office.
Key figures in attendance included the organization’s president, N.A. Ramachandra Raja, alongside members of local Primary Agricultural Cooperative Credit Societies, such as P. Ammaiyappan and A. Vijayamurugan. Ramachandra Raja voiced significant concerns regarding the Reserve Bank of India’s 2024 guidelines, which state that crop loans up to ₹2 lakh should be granted without collateral. He noted that while farmers could secure a maximum crop loan of ₹3 lakh, loans exceeding ₹2 lakh would require collateral for the entire amount.
The protest highlighted the conflicting requirements imposed by cooperative societies, as Ramachandra Raja questioned why a CIBIL score was necessary when loans of up to ₹2 lakh were supposed to be collateral-free. He pointed out that many loan applications from farmers had been rejected due to inadequate CIBIL scores, which could have been affected by loans taken from nationalized banks for other personal needs, such as education. “Why should cooperative banks be concerned about loans obtained from other banks?” he asked.
Additionally, the cooperative banks mandated a fee of ₹120 for farmers to obtain their CIBIL scores, adding another layer of financial burden on the already struggling agricultural community. The farmers argue that these requirements complicate their access to critical financial resources needed for sustainable farming and cattle maintenance.
The protest underscores a growing frustration among farmers regarding the increasing demands from financial institutions at a time when they are already facing economic challenges. As the agricultural sector navigates these new regulations, the Tamilaga Vivasayigal Sangam is raising its voice to protect farmers’ rights and ensure fair access to loans.
This issue highlights the broader challenges faced by the agricultural community, prompting discussions about the balance between financial regulation and the need to support farmers effectively. The cooperative banking system has long been a crucial lifeline for many in the farming sector, but these new rules may threaten that support just when it is needed most.
As the situation continues to evolve, farmers in Srivilliputtur remain determined to advocate for their rights and seek solutions that prioritize their needs. The protest may likely serve as a catalyst for broader conversations about the agricultural financing landscape and the role of cooperative societies in supporting rural economies.
Madurai
Tags: Farmers Protest, CIBIL Scores, Cooperative Banks, Agricultural Loans, Tamilaga Vivasayigal Sangam
Original Source: https://www.thehindu.com/news/cities/Madurai/famers-protest-against-new-rule-of-cooperative-societies-insisting-on-cibil-scores-to-give-farm-loans/article69823913.ece
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Publish Date: 2025-07-17 20:57:00
