Debt waiver: Govt asks banksto provide farmers' detail

The Punjab government today asked the banks to provide details of 10.25 lakh beneficiary farmers so that it could give a final shape to the farm loan waiver scheme, which was Congress' key poll promise.
Under pressure to bring the scheme at the earliest, state Finance minister Manpreet Singh Badal today held a meeting with government appointed expert panel and the representatives of public sectors banks and sought their suggestions.
The state government had announced to waive crop loan of up to Rs 2 lakh and sought detail of farmers including small and marginal farmers owning land up to five acres from banks.

The government has also asked banks to commence this exercise on campaign mode in coordination with district administration to cut any delay.
"We today held discussions with banks and asked them to provide us details of 10 lakh beneficiary farmers. We want to know how many of them are small and marginal. We wish these modalities be worked out and in one month time, this scheme be implemented.
"We told banks to provide us the personal data pertaining to farmers. Since it is not allowed to share personal data by banks, a consent form will be filled up by farmers, as suggested by banks, in which the data collected will be shared with the government," Badal told reporters after the meeting here.

He also said banks should also come forward to settle the debt through one time settlement scheme.

During the meeting, T Haque, a leading expert on the panel to assess the quantum of agricultural debt and suggest ways and means for farm debt waiver, was also present.
As part of the farm loan waiver scheme, the Punjab government had last month announced to waive off crop loans up to Rs 2 lakh for small and marginal farmers (owning up to 5 acres of land), and a flat Rs 2 lakh relief for all other marginal farmers, irrespective of their loan amount, which would benefit a total of 10.25 lakh farmers, including 8.75 lakh farmers having up to 5 acres of land.

"Banks have agreed to share information about farmers with the government if farmer fills up a consent form in this regard," said a bank official.
"Banks will also share Aadhaar number of farmers with the state government," he further said.
During the meeting, bank officials asked how to implement debt waiver scheme in case of joint borrower account, land given on contract and future loan interest, official said.
"We want to cut any delay in collecting information about 10 lakh accounts of farmers. It was also discussed that this exercise can be taken in campaign mode. Banks can hold camps with district administration to collect details of accounts," said a senior official of the finance department.

Asked whether banks would convert farm loan into term loan as sought by the state government for debt waiver, a bank official said banks will stick to the guidelines of the Reserve Bank of India.
The Chief Minister Amarinder Singh had met Union Finance minister Arun Jaitley in Delhi on July 20, seeking one-time settlement of Rs 6,000 crore loans taken from nationalised and private banks by farmers of the state. Such a settlement will benefit 4.5 lakh peasants.
Singh had sought Jaitley's intervention to convert the Rs 6,000 crore loan into term loan by giving requisite directions to the Reserve Bank of India (RBI).

Punjab government had proposed to own up Rs 9,500 crore as loan waiver which was to be settled with banks in 4 to 5 years time on the basis of interim report by the expert panel.
Of the total debt of small and marginal farmers waived by the state, Rs 3,600 crore relates to loan from cooperatives, with the remaining Rs 6,000 crore coming from banks.