Banks put out debt waiver list

This comes after state level bankers committees, an inter-institutional forum for joint implementation in states, got a green signal from the finance ministry late on Wednesday evening to display the names of the scheme's beneficiaries and issue certificates to them so that the process can be completed by Monday.

"Public sector banks, regional rural banks and cooperative banks have begun displaying the names of the beneficiaries all over the country. Most of the names will be displayed by tomorrow," a banking source said.

The process may get slightly delayed in certain pockets due to heavy rains and floods as is the case with a few districts in West Bengal, sources added. In many states such as Orissa, the process of notifying the beneficiaries has already been completed.

The finance ministry has estimated the financial burden at Rs 71,680 crore for giving complete relief to small and marginal farmers and 25 per cent relief to other farmers, whose loans were overdue as on December 31, 2007.

The farm debt waiver and debt relief package will benefit 43 million farmers. Thirty-seven million small and marginal farmers will get complete loan waiver amounting Rs 60,416 crore, which government will pay to the lenders.

The remaining six million farmers will get a one time settlement (OTS) after they pay 75 per cent of the eligible debt to lenders. The lenders may get about Rs 11,264 crore.

The actual cost of the scheme and number of farmers benifiting from the scheme may vary as the its coverage has been marginally widened.

Lenders will benefit substantially from the government's move as their bad assets will come down by Rs 92,255 crore due to the scheme.