Loan waiver: regional rural banks short-staffed to count farmers

Font Size

Print

Feedback

Email

Discuss

Related Articles

Banks likely to retain home loan ratesPSBs outperform private banks in Q2BoB net up 60% to Rs 634 crSBI eyes second buy in Indonesia

New Delhi, Mar 18 : Several problems are coming to the fore regarding the implementation of the Rs 60,000 crore agriculture debt waiver and relief package announced by the government.

The mammoth task of collecting data of 3-crore small and marginal farmers and 1 crore other farmers on their financial and debt status within a short duration is a concern to the regional rural banks (RRBs) due to their manpower shortage.

Cooperative banks and RRBs would be unable to meet a possible doubling of demand for fresh loans from June 2008. Sources said these banks have reported that many new borrowers have stopped repayment in anticipation of the loan waiver being extended to them. This has forced them to issue pamphlets informing the farmers about the importance of repayment. There is also a demand of reimbursement from those farmers who have duly paid their installments so far.

Cooperative bank officers said there is no clarity regarding the interest on the outstanding amount due for two years subsequent to the first year. They said cooperative banks would not get refinance from National Bank for Agriculture and Rural Development without paying the interest due.

Although the initial deadline for data collection was March 14, many cooperative banks and RRBs have informed authorities that they require more time to furnish accurate and detailed data.

RRBs also have to clear all the government schemes by this fiscal end and complete the fiscal year closing report. All India Regional Rural Bank Employees Association general secretary DK Mukherjee said, “The additional job of collecting data regarding the loan waiver scheme has coincided with the year-closing time, making the task very difficult. RRBs are facing a manpower shortage of around 15,000 people, though official estimates are between 4,500-6,000 vacancies. Besides, the business of each branch has increased ten-fold in the last decade.”

Samir Ghosh, chairman, West Bengal State Cooperative Bank said, “primary agriculture cooperative societies in West Bengal alone have to collect a list all details regarding around 5 lakh defaulters. To do it in a few days time is an impossible task.”