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Co‑operative Registrar Issues Circular to Pause All Farm‑Loan Dues Until New Disbursement Deadline

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News Analysis IndiaReporter
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September 22, 2026
08:10 AM
Co‑operative Registrar Issues Circular to Pause All Farm‑Loan Dues Until New Disbursement Deadline

The Registrar of Cooperative Societies in Tamil Nadu released a formal circular on Monday directing every cooperative bank and society to suspend the collection of agricultural loan instalments pending further orders. The suspension applies to borrowers who have fully settled prior obligations or whose outstanding balance has been partially written off under the 2026 farm‑loan waiver scheme. Such farmers must be provided with a fresh loan by 30 September, the notice adds. The order addresses complaints that some institutions were enforcing strict recovery against partially waivered borrowers and delaying or denying fresh credit for the current cropping season. Data from the cooperative department indicate that by 31 December 2025, a total of ₹15,108 crore in farm credit had been extended, with ₹5,932.23 crore earmarked for the waiver. So far, the waiver has benefited 1.334 million farmers, absolving them of up to ₹75,000 each. The circular calls on joint registrars, district cooperative bank managing directors, and zonal coordinators to ensure full compliance and to monitor that no recovery actions are taken before the new deadline.

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