Wed Jul 16 09:20:27 UTC 2025: Okay, here’s a news article summarizing the provided text, suitable for The Hindu newspaper:
**Headline: Karnataka Minister Urges Banks to Show Lenience in Farmer Loan Recovery**
**HUBBALLI, July 16, 2025:** Karnataka Labour Minister and Dharwad district-in-charge, Santosh Lad, has called on banks to adopt a more compassionate approach to loan recovery from farmers, emphasizing that genuine hardships should be considered.
During a review meeting held in Dharwad on July 14, 2025, Lad stressed that farmers, skilled workers, and employees sometimes default on loans due to unavoidable circumstances and deserve reasonable repayment extensions. “People’s lives are more important than loan recovery,” he stated, warning against inhumane practices during the recovery process.
To address the pressing issue of farmer suicides, the Minister announced the formation of a committee comprising officials from the University of Agricultural Sciences, Revenue and Agriculture Departments, bank representatives, and agricultural experts. This committee will conduct a scientific study to understand the underlying causes and circumstances contributing to these tragedies.
Lad also highlighted the importance of educating farmers about responsible loan repayment practices. He urged banks to consider the financial condition of borrowers and offer flexible repayment options in legitimate cases of hardship.
Furthermore, the Minister made it clear that banks are legally prohibited from adjusting government relief funds, pensions, crop compensation, insurance claims, or subsidies against Non-Performing Asset (NPA) loan accounts. He assured that any such funds mistakenly deposited into loan accounts must be immediately redirected to the beneficiary’s savings account, and that he will bring this matter to the attention of the Chief Minister.
Deputy Commissioner Divya Prabhu G.R.J. confirmed that all banks have been warned against appropriating government aid or compensation towards farm loans. She stated that a formal proposal addressing this issue has already been submitted to the State Bankers’ Committee and the government by the district administration. While acknowledging that technical errors sometimes result in government funds being credited to loan accounts, she assured that banks are now actively returning these funds to beneficiaries’ savings accounts. The Deputy Commissioner noted that the issue is prevalent across the country, requiring government-level intervention for rectification.
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