RBI Orders Full Recovery & Accountability for Agri Debt Waiver Lapses

RBI/2012-13/430 RPCD.CO.FSD. No. BC. 67/05.04.02/2012-13 March 6, 2013 The Chairman/ Managing Director/ Chief Executive Officer All scheduled commercial banks & Local Area Banks Madam/Dear Sir, PERFORMANCE AUDIT OF AGRICULTURAL DEBT WAIVER AND DEBT RELIEF SCHEME, 2008 Please refer to our Circular RPCD.CO.FSD. No. BC.58/05.04.02/2012-13 dated January 14, 2013 on the above subject. Considering the serious nature of observations made by the Comptroller and Auditor General, it has been, inter alia, desired by the Government of India that: The beneficiaries' lists need complete verification with priority being given to areas where indebtedness was high. Administrative/accounting lapses on the part of the officials, internal auditors and statutory auditors who were responsible for verification, certification, or for passing the claims be identified and accountability fixed for the lapses. Action needs to be initiated and full responsibility be fixed at the earliest with no exceptions. Cases of extending of benefits to ineligible beneficiaries must be dealt with on top priority and full recoveries as per law must be made to ensure no loss to the exchequer. It will be the personal responsibility of the institutional heads to ensure that such recoveries are effected in full. All cases of tampering of records or alteration, etc. must be identified and scrutinized by higher authority. A decision on each such case in the form of speaking orders must be taken. Stringent action under relevant sections of law against those responsible must be initiated. This would be monitored by the CVOs of the concerned institutions regularly. Debt Waiver/Debt Relief certificates must be issued in all eligible cases immediately and full records of such issuance may be kept ready for inspection. A list of eligible beneficiaries who were not extended benefits also be drawn up and may be examined qualitatively to establish the reasons for such denials. Action may be initiated in all cases where malafides or carelessness appears likely. 2. We are enclosing a format for monthly reporting with respect to the above issues. The information in this format may please be forwarded to us latest by 7th of every month to enable us to apprise Government of India accordingly. Yours faithfully (Madhavi Sharma) Chief General Manager Encl.: as above

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/430 · issued 06 Mar 2013. The plain-English explanation above is BankPulse’s own independent summary.

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