While he was in charge of the compliance audit of assistance to farmers through primary agricultural cooperative societies (PACS) under the Department of Cooperation from June to September 2019, the Controller and Auditor General (CAG) of India observed that new loans were sanctioned to repay old loans.
Sanctioning loans to repay old loans can in no way be characterized as prudent lending and carries the inherent risk of perpetuating farmer indebtedness and increasing non-productive assets (NPAs) for co-operative banks as they arise. are in financial difficulty, observed the CAG. .
Details of the verified statement were revealed at a press conference held at the GA’s office on Sunday by Accountant General Bibhudutta Basantia. The system adopted by companies and cooperative banks to facilitate the repayment of crop loans by farmers by sanctioning new crop loans year after year without actual disbursement, should be reviewed immediately, the CAG report suggested. new system to facilitate the withdrawal of funds by farmers through RuPay Kisan cards, but without guaranteeing the basic requirement of checking the details of farmers’ membership.
This put an additional burden on the public treasury to the tune of Rs 17.43 crore, which was made entirely unnecessary, he said. Additionally, due to lack of oversight, PACS computerization and connectivity through VSAT were delayed, which deprived farmers of online banking and access to ATMs through RuPay Kisan cards, according to RuPay Kisan cards. The report.
Failure to extend aid to stricken farmers in time deprived affected farmers of aid. Likewise, the possibility of obtaining agricultural equipment on hire for the farmers was refused due to laxity in the development of the modalities of establishment of the agricultural service centers, despite the handing over of 14.43 crore of rupees to Odisha. Agro Industries Corporation, according to the report.