Implementation Of The Farmer Loan

NEW DELHI: The government is working hard to keep the implementation of the farm loan waiver scheme real simple — so simple that the borrower will not be required to come to the branch for getting his loan waivedWhile government is preparing guidelines for the scheme, the chances of identity fraud are not being ruled out.

“The scheme is between the government and the bank. The borrower will not even be required to come to the branch in order to avail the waiver. It will all be settled in the bank’s accounts. Borrowers will automatically be eligible for fresh credit once all NPAs against their names are struck off,” a source close to the development said.

Chances of identity fraud are not ruled out, he added. These banks have lakhs of small farm accounts on their books and they need adequate time to authenticate the beneficiaries of this scheme. While emphasizing that implementation will remain the key for the success of this scheme, the source said the bank must have a clear idea of who is eligible and who is not.

However, the government is optimistic that the scheme will take off. There has been a lot of preparation and several issues with respect to implementation have been discussed thread-bare. “If banks follow the guidelines well, implementation will not be a problem," the source said.