RBI, Nabard examining errors in farm debt waiver scheme:FM

Amid CAG pointing to errors in implementation of the farm debt waiver scheme, government today said RBI and NABARD are examining the case and action will be taken against banks found involved in irregularities and the ineligible beneficiaries.
Replying to supplementaries in Rajya Sabha, Finance Minister P Chidambaram said the CAG report on the Agricultural Debt Waiver and Debt Relief Scheme, 2008, has been submitted and a day would fixed for its tabling.
The government auditor in its report has pointed out errors of inclusion and errors of exclusion, he said.
It is "unfortunate" that some deserving farmers did not get the benefit of the scheme and some "ineligible farmers got benefit of loan waiver", he said.

The government, Chidambaram said, is more concerned about inclusion of ineligible beneficiaries.
He said action will be taken against banks found involved in irregularities besides the ineligible recipients of the scheme after completion of the inquiries.

NABARD and RBI, in January, issued directions to lending institutions to examine cases of any irregularities and to take corrective steps including recovery of such amounts from ineligible beneficiaries.
Directors had also been issued for recovery of any excess payment and fixing responsibility of the bank staff in appropriate cases.
The Minister said he was also open to suggestion of a separate probe if the ongoing ones do not yield desired results.

He said the debt waiver was to the tune of about Rs 55,000 crore.
The Minister said the amount of money given to ineligible beneficiaries would be known after completion of the inquiries.
The guidelines issued by the government for the scheme, included procedures for preparation of beneficiaries lists; setting up of grievance redressal mechanism; and statutory, concurrent or special audit of the claims as may be prescribed by RBI and NABARD.