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FM briefs banks on loan waiver
June, 06th 2008

In order to initiate the debt waiver scheme, Union Finance Minister P Chidambaram held a video conference on Thursday with chairmen and managing directors of the three public sector banks--United Bank of India (UBI), Allahabad Bank and UCO Bank--headquartered in Kolkata .

While directing the banks to implement the agricultural debt waiver and debt relief scheme within June 30, 2008, he listed the action points for compliance by banks.

Executives should be allocated 20-25 branches each which should be visited by them for verification and clearance of the eligible farmers' list.

Subsequently, these executives should visit the branches before June 15, 2008, and give clearance to the list for display after thorough verification.  The CMD and the ED should personally inspect two to three branches.

The display of the eligible list of farmers under waiver as well as debt relief should be completed preferably by June 20, 2008.

Individual farmers need not have to make any application to the branch for getting the benefit of debt waiver.

Farmers need to only visit the branch to see whether the name was on the appropriate list displayed by the branch. A certificate on waiver of the loan to eligible farmers would be issued by the branch. Farmers will then be eligible for a fresh loan from the bank.

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