Karnataka   

Procedures simplified for obtaining farm loans

Special Correspondent

BANGALORE: Devaki Muthukrishnan, Regional Director, RBI, Bangalore, has said procedures and formalities for obtaining farm loans have been simplified and a decision has been taken to dispense with the requirement of "No due certificate" for loans up to Rs. 50,000 to small and marginal farmers in public sector banks.

Addressing the 101st State Level Bankers' Committee meeting on Tuesday, she said instead of "No due certificate," farmers could furnish self-declaration to the bank for obtaining loans. In order to overcome the problem of producing identification documents by landless labourers, share croppers, and oral lessees, the bank had been advised to accept certificates provided by the local panchayati raj institutions. The RBI, Ms. Muthukrishnan said, had revised the guidelines relating to the priority sector lending on April 30.

The Union Government had identified 103 minority concentrated districts in the country. In the State, Dakshina Kannada and Bidar were identified as minority concentrated districts. The flow of credit to minority community had to be monitored on a half yearly basis. Further, loans and advances granted to minority community would qualify for inclusion under weaker sections, she said.

Appealing to the bankers to draw a road map for financial inclusion of all households in all districts, Ms. Muthukrishnan urged the Government to expedite signing memorandum of understanding for implementation of the short-term rural cooperative credit structure under the Vaidyanathan Committee recommendations. So far, 17 States accepted the package of the panel.

C.P. Swarnkar, Chairman and Managing Director, SyndicateBank, and also chairman of SLBC, in his welcome address said under the package of relief measures for the debt stressed farmers of six districts, the commercial banks, regional rural banks, and cooperative banks had submitted interest claims to the tune of Rs. 515.27 crore, Rs. 95.15 crore and 115.47 crore so far to RBI/NABARD.

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