Alappuzha: Even as it has been more than two months since a Kuttanad farmer committed suicide due to mounting debt, banks are  yet to resolve how to ensure that arrears on paddy receipt sheet (PRS) loans do not have a negative influence on farmers' CIBIL scores. 

K.G. Prasad from Thakazhy in Kuttanad committed suicide after the banks refused to extend him a loan due to a low CIBIL score. After a note allegedly written by him prior to his death came out, the government held a meeting with top officials from various banks to resolve the issue. However, even after two months, no decision has been made.

Agriculture Minister P. Prasad said that banks should rethink their approach of troubling farmers on account of CIBIL scores and that the same should not be affected due to PRS loans. The High Court also passed an interim order along the same lines. Yet, the banks seem reluctant to take further steps in this regard.

It is worth noting that the Kerala Government's Supplyco takes loans from banks on behalf of paddy farmers, and the government offers guarantees for such loans. However, when the government delays payments, the farmers' CIBIL scores suffer. The government requested the banks to find a solution to avoid this situation.

It should be highlighted that Kerala's banks cannot make such policy decisions on their own. The banks' headquarters must approve the request.