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RBI seeks info on action taken by banks in farm debt waiver irregularities

07 Mar 2013 Evaluate

On the backdrop of serious observations made by official auditor Comptroller and Auditor General (CAG), the Reserve Bank of India (RBI) has asked banks to submit information about the irregularities in the Rs 52,000 crore farm debt waiver scheme along with the details of amount recovered and FIRs filed in a prescribed format by 7th working day of every month.

The apex bank has also asked the banks to provide information with regard to ineligible and eligible beneficiaries, who were denied loans, money given to microfinance institutions, tampering of records and cases where relief certificates were not issued.

The CAG report, which was tabled in Parliament on March 6, deals with Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) 2008, under which 3.69 crore small and marginal farmers and 60 lakh other farmers were given debt relief to the extent of Rs 52,516 crore. It said that numbers of shortcomings have found in the implementation of the Rs 52,000 crore farm debt waiver scheme and pointing out that thousands of beneficiaries were not eligible, while those eligible were denied the benefits.

The reported also pointed that out of 9,334 accounts test checked in audit across nine states, 1,257 accounts (13.46 percent) were those which were found in audit to be eligible for benefit under the scheme, but were not considered by the lending institutions while preparing list of eligible farmers. Further, out of 80,299 accounts granted debt waiver or relief, in which 8.5 percent of cases, the beneficiaries were not eligible for either debt waiver or the debt relief.

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