📷 Image: Wikimedia Commons / TerminatorMan2712
Agriculture
Maharashtra Cabinet Panel Bars Banks from Visiting Farmers for Crop Loan Recovery Amid Drought
✍️ Mid-Day
🗓 30 Sep 2026, 02:01 PM
👁 7
A Maharashtra cabinet panel has ordered banks to stop personal visits to farmers for crop‑loan recovery, citing the ongoing drought’s impact on agricultural livelihoods.
The state government’s drought‑response cabinet panel issued a directive prohibiting banks from making on‑site visits to farmers for the purpose of recovering crop loans. The decision aims to alleviate the pressure on agrarian families already grappling with water scarcity and reduced yields.
Officials said the measure will be communicated to all scheduled commercial banks operating in Maharashtra, and banks are to rely on existing digital and telephonic channels for any loan‑related communication. The panel emphasized that the move is temporary and will be reviewed once the drought situation improves.
The directive aligns with broader relief efforts announced by the state, which include increased credit lines, waiver of interest on existing loans, and enhanced insurance coverage for drought‑affected crops. Agricultural experts welcomed the step, noting that aggressive loan recovery could push vulnerable farmers into deeper debt.
Banking associations have been asked to cooperate fully and ensure that field officers adhere to the new guidelines, with penalties outlined for non‑compliance. The panel will monitor the impact of the policy over the coming weeks and report back to the chief minister’s office.
Officials said the measure will be communicated to all scheduled commercial banks operating in Maharashtra, and banks are to rely on existing digital and telephonic channels for any loan‑related communication. The panel emphasized that the move is temporary and will be reviewed once the drought situation improves.
The directive aligns with broader relief efforts announced by the state, which include increased credit lines, waiver of interest on existing loans, and enhanced insurance coverage for drought‑affected crops. Agricultural experts welcomed the step, noting that aggressive loan recovery could push vulnerable farmers into deeper debt.
Banking associations have been asked to cooperate fully and ensure that field officers adhere to the new guidelines, with penalties outlined for non‑compliance. The panel will monitor the impact of the policy over the coming weeks and report back to the chief minister’s office.