HC: Begin new scheme from Nov, let farmers get familiar with ATM use

Justice N Anand Venkatesh before whom the plea moved by a farmer PV Saravanan came up seeking time to prepare for the change in system, which they have no objection to, said “In order to maintain a balance to ensure that the new procedure is implemented and at the same time the stakeholders are also given some time, this Court thought it fit to request the Registrar of Cooperative societies to implement the impugned letter dated 27.07.2020 from the 1st of November 2020.”

“In the meantime, the opening of Mirror Account and the issuance of ATM Card can take place. The current procedure adopted for disbursement of loan can continue till the new procedure is implemented,” the judge added.

He also noted that the petitioner’s counsel is perfectly right in saying the system can be implemented only after the stake holders are given sufficient time to understand the same. As per the new scheme withdrawal of cooperative society loan by famers could be done only after opening a ‘mirror account’ at the respective District Central Cooperative Bank and the loan amount withdrawn only through an ATM using Kisan Credit Card.

The Government had submitted that the new system offered by NABARD brings about a fool proof method for disbursement of the loan to farmers and it will effectively take care of the interference of middle men and the farmers will be getting the entire loan amount directly from their accounts, which is termed as a ‘Mirror Account’.

The farmers will have access to the ATM Card and they can withdraw the amount as and when necessary and they don’t need to handle the amount at one stroke.