What changed
RBI issued a circular on January 14, 2013, directing banks to take corrective actions based on CAG's performance audit of the Agricultural Debt Waiver and Debt Relief Scheme, 2008. Key issues include ineligible accounts receiving benefits, tampering of records, and non-issuance of certificates.
What it means for you
Banks must recover funds from ineligible beneficiaries and fix responsibility on officials and auditors for lapses. They also need to issue pending Debt Waiver and Debt Relief Certificates by February 28, 2013, and monitor fresh loans to beneficiaries. This tightens compliance and accountability under the scheme.
What you must do
- Recover amounts from ineligible farmers and MFI loans wrongly claimed under the scheme.
- Fix responsibility on bank officials and auditors for tampering, over-writing, or inadequate documentation.
- Issue pending Debt Waiver and Debt Relief Certificates to eligible beneficiaries by February 28, 2013.
- Monitor fresh loans extended to scheme beneficiaries and report outcomes.
- Complete all actions within one month from circular date and report to RBI and Ministry of Finance.
Who it affects
All scheduled commercial banks, Local Area Banks, Bank officials handling agricultural loans, Auditors of banks
What is the deadline for issuing Debt Waiver and Debt Relief Certificates?
The deadline is February 28, 2013, as per the circular.
What action is required for ineligible accounts that received benefits?
Banks must recover the money from ineligible beneficiaries, fix responsibility on officials and auditors, and consider lodging FIRs in cases of tampered records.
How should banks handle cases where MFI loans were wrongly claimed?
Banks must fix responsibility on officials responsible for such disbursal and recover the money.