Farm debt waiver: Banks told comply with schemes post-CAG note

The government today said banks have been issued circulars to take corrective actions in pursuance of CAG findings with regard to implementation of farm debt waiver scheme.

Minister of State for Finance Namo Narain Meena said government has issued instructions to the Reserve Bank to advise banks to take immediate corrective measures after taking note of the observations made by the office of the Comptroller and Auditor General of India on the implementation of the Agricultural Debt Waiver and Debt Relief Scheme, 2008.

"...Circulars have been issued to all public sector banks, private sector banks, urban cooperative banks and local area banks, for which RBI was the implementing agency for the scheme, to comply with the government schemes," he said in a written reply to Lok Sabha.

He was replying to a question on whether RBI has directed public sector banks to recover money from persons who got their loans waived by fraudulent means in connivance with bank officials.

Meena said banks have been advised to completely verify beneficiaries' list with priority to areas where indebtedness was high.

Banks have also been asked to identify administrative/ accounting lapses on part of officials, internal auditors and statutory auditors who were responsible for verification, certification or for passing the claims as well as fixing of accountability for lapses.

Also, cases of extending benefits to ineligible beneficiaries must be dealt with on top priority and full recoveries as per law must be made to ensure no loss to the exchequer.

All cases of tempering of records or alteration must also be identified and scrutinised by higher authority, the Minister said.

Besides, stringent action under relevant sections of law against those responsible must be initiated, he said.

He further said banks have been advised to report any case of criminality and lodging of FIRs.Farm debt waiver: Banks told comply with schemes post-CAG note

Meena said banks have been advised to completely verify beneficiaries

Farm debt waiver, Namo Narain Meena, Banks, CAG
New Delhi, Mar 15 (PTI)


The government today said banks have been issued circulars to take corrective actions in pursuance of CAG findings with regard to implementation of farm debt waiver scheme.

Minister of State for Finance Namo Narain Meena said government has issued instructions to the Reserve Bank to advise banks to take immediate corrective measures after taking note of the observations made by the office of the Comptroller and Auditor General of India on the implementation of the Agricultural Debt Waiver and Debt Relief Scheme, 2008.

"...Circulars have been issued to all public sector banks, private sector banks, urban cooperative banks and local area banks, for which RBI was the implementing agency for the scheme, to comply with the government schemes," he said in a written reply to Lok Sabha.

He was replying to a question on whether RBI has directed public sector banks to recover money from persons who got their loans waived by fraudulent means in connivance with bank officials.

Meena said banks have been advised to completely verify beneficiaries' list with priority to areas where indebtedness was high.

Banks have also been asked to identify administrative/ accounting lapses on part of officials, internal auditors and statutory auditors who were responsible for verification, certification or for passing the claims as well as fixing of accountability for lapses.

Also, cases of extending benefits to ineligible beneficiaries must be dealt with on top priority and full recoveries as per law must be made to ensure no loss to the exchequer.

All cases of tempering of records or alteration must also be identified and scrutinised by higher authority, the Minister said.

Besides, stringent action under relevant sections of law against those responsible must be initiated, he said.

He further said banks have been advised to report any case of criminality and lodging of FIRs.