|
Minister of State for Finance, Shri S.S. Palanimanickam informed the Rajya Sabha today that as reported by the Reserve Bank of India the steps have been taken to simplify its policy for providing loans to SCs/STs, OBCs, small and marginal farmers and unemployed graduates. These include the following :
1. Relaxation for SC/ST beneficiaries under major Centrally Sponsored Schemes
i) Under SGSY scheme, beneficiaries belonging to SC/ST are entitled to subsidy of 50 per cent of the project cost with a maximum ceiling of Rs.10,000/-.
ii) 10 year relaxation in the upper age limit under PMRY Scheme.
iii) Under the DRI scheme the eligibility criteria for size of land holding not exceeding one acre of irrigated land and 2.5 acres of unirrigated land is not applicable to SCs/STs.
2. Guidelines for simplifying policy for loans to SCs/STs
i.) Bank staff to assist in completion of procedural formalities.
ii.) Bank staff to contact SC/ST borrowers to explain the salient features of the schemes for availing credit facilities.
iii.) Banks to maintain Application Register/Credit Register/Complaint Register etc.
iv.) Banks not to insist on deposits while considering loan applications under Govt. sponsored poverty alleviation schemes/self employment programmes from borrowers belonging to SCs/STs.
v.) Banks to advise their branches/controlling offices to render all the necessary institutional support to the national SC/ST Finance & Development Corporation.
3. Steps taken for sanction to hassle free loans under the Centrally Sponsored Schemes to OBC, Small and marginal Farmers/Labourers.
i.) RBI has advised commercial banks that loan applications under SGSY be disposed off within the prescribed time limit of 15 days and not later than one month.
ii.) Ensure that documentation process is simple to avoid hardship to the beneficiaries.
iii.) In case of rejection of application, the reasons to be invariably recorded.
iv.) Under SGSY, for individual loans up to Rs.50,000/- and group loans upto Rs.5 lakh, the assets created out of bank loan would be hypothecated to the bank as primary security.
v.) Branch Managers to be vested with adequate discretionary powers to sanction proposals under the SGSY scheme.
4. Loans to Small and Marginal Farmers
i.) As per the R V Gupta Committee recommendations in 1998, the following steps were initiated. Procedural modifications for agricultural advances, including simplification of procedures/application forms, agreements etc., introduction of composite cash credit limits to agriculturists, cash disbursement of loans, dispensing with the ‘No Dues Certificate’, discretion to banks on matters relating to margin/security requirements for agricultural loans above Rs.10,000/- etc.
ii.) Further, on the basis of recommendations made by the Vyas Committee, the banks have been advised to waive margin/security requirements for agricultural loans upto Rs.50,000/- and for agri-business and agri-clinics up to Rs.5 lakh.
Other relaxations extended to agricultural borrowers include :
i.) Payment of interest to be insisted upon only at the time of repayment of loan installments fixed.
ii.) Banks not to compound interest on current dues in respect of long duration crop loans and installments not falling due in respect of term loans.
iii.) Total interest debited to the accounts of small and marginal farmers not to exceed the principal amount in respect of short-term advances.
iv.) Government’s Policy announcement on 18th June, 2004 includes a One Time Settlement (OTS) Scheme for small and marginal farmers, under which banks are required to formulate guidelines, with the approval of their Board of Directors, on one time settlement for small and marginal farmers, who have been declared as defaulters and have become ineligible for fresh credit. Detailed guidelines have been issued by Indian Banks’ Association (IBA) to commercial banks and by NABARD to RRBs and Cooperative Banks.
The state-wise information regarding the number of applications received and sanctioned for granting loan by Nationalised Banks under various self-employment schemes during the last three years is being collected.
This information was given by the Minister in reply to a question raised by Shri T.R.Zeliang, MP, Rajya Sabha.
BSC/BY/CS-201/05
|
