Thiruvananthapuram: The banks have warned that they will initiate proceedings to attach property over loans as the Reserve Bank of India has not issued an order extending the moratorium period.

Moratorium on agriculture loans enforced in the state expired on March 31. In this background, state level bankers’ committee has clarified that banks will proceed with attachment of property over recovery of loans. The committee has issued a notification in this regard.

The committee also informed that attachment of property initiated by banks which have membership in SLBC has legal validity.

Earlier, the state government has announced a one-year moratorium on agricultural loans. But Reserve Bank of India has not given permission to extend the moratorium which expired on March 31. On the basis of this, the bankers’ committee informed that action, including attachment of property, will be initiated for the recovery of loans.

In the notification, the committee also noted that if farmers fail to repay the loans, banks will proceed with action as the moratorium is not in effect. It also pointed out that there is no restriction for attachment of property over recovery of loans.