Karnataka to consider parking govt funds in Co-Op banks, says CM Siddaramaiah

2023-11-20 13:03:54

Chief Minister Siddaramaiah on Monday said the government would examine if it might park government funds in cooperative banks rather than in nationalised banks.

The CM made the remarks at the valedictory of the All-India Convention on Cooperation at Vijayapura, attended by his Cabinet colleagues.

Cooperative banks, the CM added, should be stable. Only then might they lend to farmers. “If farmers get timely loans, it will lead to better farm productivity.” Cooperative banks became stronger following his government waived farm loans of up to Rs 50,000 during his earlier stint as CM, and reimbursed them for that.

During his previous stint, the government gave loans of up to Rs 3 lakh at a subsidized 3% rate of interest, but his government was now giving interest free loans of up to Rs 5 lakh., Siddaramaiah said. The government should be able to give loans of up to Rs 15 lakh at 3% rate of interest, the CM said, while adding that he would write to Prime Minister Narendra Modi and NABARD to implement this.

Commenting on the drought in Karnataka, Siddaramaiah said 223 taluks out of 236 taluks were reeling under drought and urged the MPs to get the Centre to release funds.

Siddaramaiah told bankers and banking staff that the banks would see profits only with selfless service to customers. The sector will also help the banking staff emerge good leaders.

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