| Date : 23 Aug 2007 |
|RBI invites Comments on Working Group Report to examine Procedures and Processes of Agricultural Loans |
|The Reserve Bank of India today
placed on its website the report of the Working Group set up to suggest measures to further simplify the procedures
and processes for agricultural loans, especially for small and marginal farmers.
While the Reserve Bank has already implemented certain recommendations of the
Working Group in its Annual Policy for 2007-08, it has released the report of
the Working Group stating that the other recommendations of the Working Group
have relevance for various categories of stake holders including the farmers,
banks, State Governments and also technology service providers for computerisation
and crop mapping services, etc. Feedback may please be sent to the Chief General
Manager, Rural Planning and Credit Department, Central Office, Mumbai latest by
September 21, 2007.
may be recalled that the Reserve Bank of India had constituted a working Group
under the Chairmanship of Shri C.P. Swarnkar, Chairman and Managing Director,
Syndicate Bank to suggest measures to further simplify the procedures and processes,
thereby reducing the cost and time for obtaining agricultural loan, especially
by small and marginal farmers. The Report of the Working Group was submitted in
April 2007 and Reserve Bank has already implemented the following recommendations
of the Group in the Annual Policy for 2007-08 :
banks were advised to immediately dispense with the requirement of 'no due' certificate
for small loans up to Rs.50,000 to small and marginal farmers, share-croppers
and the like and, instead, obtain self-declaration from the borrower.
- Further, banks were advised to accept certificates provided by local administration/panchayati
raj institutions regarding the cultivation of crops in case of loans to landless
labourers, share-croppers and oral lessees. This would help overcome the problem
faced by the banks in lending to landless labourers, share-croppers and oral lessees
due to the absence of documents verifying their identity and status.
role of financial/credit counselling towards enhancing the quantity and quality
of agricultural credit, each State Level Bankers Committee convenor has been asked
to set up a credit-counselling centre in one district as a pilot and extend it
to all other districts in due course.
Deputy General Manager
Release : 2007-2008/275