One-time settlement plan for small farmers
By Mumbai: | 14 Jul 2004
Mumbai: The Indian Banks' Association has drawn up three schemes to improve credit flow to the farm sector. V. Leeladhar, chairman, IBA, yesterday urged banks to implement the new schemes.
"Banks should evolve a strategy to implement these schemes with clearance from their respective boards," said Leeladhar, who was speaking at the foundation day function of NABARD.
The schemes include one time settlement for small and marginal farmers . The scheme will cover all loan accounts sanctioned to small and marginal farmers, which are in default as on June 24, 2004.
The guidelines will also cover suit-filed and decreed debts, said the IBA Web site.
Another scheme is for relief to farmers affected by natural calamities for at least two successive years in the last five years in notified districts.
The scheme covers distressed category of farmers who had suffered production and income losses on account of natural calamities such as drought/flood or other calamities which might have occurred in the districts for two or more successive years during the past five years, provided such districts had been declared as "calamity affected" by the State Government concerned.
The scheme would also cover farmers whose borrowal accounts have been restructured in the past as per RBI guidelines.
The third scheme is for providing relief to farmers in arrears. The scheme covers investment credit and production loans to farmers who have defaulted in meeting repayment commitments due to factors beyond their control and are not eligible for relief under the scheme for providing relief to farmers in distress as per guidelines issued by RBI, said the IBA.
Another measure is to mitigate acute distress faced by farmers due to heavy burden of debt from non-institutional lenders.
The indebtedness intended to be taken over from non-institutional lenders may be included as part of assessment of limits under Kisan Credit Card Scheme, said the IBA.
The Chairperson of Nabard, Ms Ranjana Kumar, said, commercial banks, co-operatives and regional rural banks (RRBs) needed to evolve a joint strategy with the assistance of State Governments to achieve the Centre's aim of doubling agriculture credit in three years.
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