The Kovid-19 lockdown time has had a profound impact on banking services. The negative impact on the grant of loans to agriculture sector in the country is mainly high. The recovery of loans has fallen badly. Digital banking services have had a positive impact on lack of transportation and physical distance in the wake of lockdown. These findings have been revealed in a survey conducted by NABARD in the districtwise districts across the country. During the Kovid lockdown, NABARD conducted a district-wise survey on the impact of Kisan Credit Cards, Term Loan slips, Recovery of Loans, Digital Banking and minimum banking services for the agriculture sector. The impact on banking services is severe in some districts while some districts are moderate. Some districts have no effect. The lockdown has affected agriculture, dairy, fisheries and horticulture as restrictions on the movement of vehicles. It has affected livelihood. This led to farmers not being able to repay the loans.
The recovery of loans of banks has had a profound negative impact in 94 per cent of the districts in the country. The loan sanction to farmers on Kisan Credit Cards has been adversely affected in 59 per cent districts across the country. Manipur, Mizoram and Sikkim have had a major impact on the availability of loans to farmers in 100 per cent districts in Kerala, 75 per cent in Assam, 76 in West Bengal, 75 in Uttar Pradesh, 73 per cent in Bihar and 71 per cent of Maharashtra. Chhattisgarh has seen a negative impact on 78 per cent, 75 per cent in Jharkhand and 68 per cent in Maharashtra. 89 per cent of the districts have had a negative impact on term loan grants.
Due to restrictions on traffic in the lockdown, the bank staff did not interest in visiting the project and no one was interested in taking up new investments and projects in view of the financial and health conditions. This effect is high in small states. In Haryana and Himachal Pradesh, 100 per cent, Bihar, Punjab and Rajasthan 95 per cent, Maharashtra 94 per cent and Madhya Pradesh 91 per cent of the districts have been affected. Banking digital transactions have had a positive impact in 63 per cent of the districts. Those who did not like to make digital transactions in the past have also done digital transactions in the wake of the lockdown. Those who do not understand this have also done it with the help of others. 95 per cent in Kerala, 91 per cent in Punjab, 90 in Rajasthan, 87 per cent in Haryana and 81 per cent in Bihar have had a positive impact on digital transactions.
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