Nashik District Collector Ayush Prasad has directed all banks in the district to stop recovering loans from government relief payments meant for farmers affected by drought and other natural disasters during the 2026 kharif season. Banks have also been instructed not to place holds on the accounts receiving the assistance.
The order applies to farmers in 13 drought-affected talukas of Nashik district. Under a government resolution issued by the Disaster Management, Relief and Rehabilitation Department on October 27, 2026, each eligible farmer has been sanctioned advance assistance of ₹5,000 for the 2026 kharif season. Work to deposit the amount into farmers’ bank accounts before Diwali is under way, according to the report.
The district administration said the instructions were issued because the number of affected farmers is large and the relief must reach beneficiaries without obstruction. The order covers both the announced advance assistance and grants released from time to time for losses caused by natural disasters.
Banks have been told not to transfer or divert any portion of the government assistance into a farmer’s loan account under any circumstances. The directive also prohibits banks from placing a hold on the account into which disaster relief or other government assistance has been deposited.
The instruction is addressed to all nationalised and cooperative banks operating in the district. The district lead bank manager, the district deputy registrar of cooperative societies and all tehsildars have also been directed to ensure immediate implementation.
The order places responsibility on banking and district-level administrative systems to separate disaster assistance from ordinary loan recovery processes. For affected farmers, this means the relief amount is intended to remain available for the purpose for which it was sanctioned, rather than being absorbed into another credit account or blocked by account restrictions.
The district administration has warned that banks could face action if relief funds are found to have been diverted to other loan accounts or if beneficiaries’ accounts are placed on hold. Collector Ayush Prasad said violations would attract serious action under provisions of the Disaster Management Act, 2005.
The directive covers assistance deposited into affected farmers’ accounts on a recurring basis, not only the ₹5,000 advance announced for the 2026 kharif season. Its implementation will therefore depend on coordination among banks, the lead bank manager, cooperative authorities and revenue officials as further relief payments are released.
