Besides furnishing the details of beneficiaries of debt waiver and debt relief scheme, banks will also have to compile the data on total amount written off, along with the interest, fees and other charges of banks applicable up to February 29, 2008. This data will help to know the actual loss incurred by banks under the scheme as they written off the interest, which was to be taken from farmers.
The finance ministry of has asked the state level bankers committee (SLBC) convenors, to provide data on written off loans by banks, which can neither be claimed from the central government nor can be recovered from the farmers. However, the farmers whose loans have been written off will be eligible for fresh loans.
Banks will have to give clear details of the amount of waiver, relief granted to farmers and the amount claimed from the government. Pertaining to few queries, the finance ministry has cleared that amount of debt waiver/debt relief given to farmers will also include the amount actually written off along with the interest, fee and other charges. Farmers will be given certificates of the waiver and relief making the eligible for fresh loans.
The interest, charges and fee in accounts classified as non performing assets will be included in the amount of debt waiver and debt relief but the interest will not be a part of the claim reimbursement by the government. This circular of the ministry is being circulated to concerned banks in this region so that actual details could be compiled soon.
As per the calculations of the SLB, in Haryana 6, 80738 farmers will reap the benefit of the scheme where bad loan of worth Rs 2120.90 crore will be written off including Rs 1485.44 crore debt waiver and Rs 635.46 will come under debt relief. Similarly Punjab is expected to get the total benefit of around Rs 987 crore under the scheme.