Considering the slow progress of ‘Debt Swap Scheme’, the banks in Punjab have decided to adopt a block in each district.
This would also rescue the farmers from the clutches of moneylenders who charge exorbitant rates of interest.
The convenor bank for the state, Punjab National Bank (PNB), recently revised some of the stipulation of the Debt Swap Scheme. Majority of moneylenders are not registered according to the state provisions. They also lend privately without any documentary proof. Consequently, they are reluctant to give any certificate to the farmers. To remove this hurdle, PNB has decided to allow financing under the scheme on the basis of affidavit of the farmer. The requirement of obtaining a certificate of the moneylender discharging the borrower from total liability has been dispensed with.
Accordingly, at the discretion of the branch manger and on the request of the borrower, disbursement of entire loan of Rs 50,000 may be made to the credit of borrower’s saving or Kissan Credit Card and the receipt for payment from the moneylender may not be required.
Initially, under the scheme, Bamial Block of Gurdaspur was selected for this scheme. Till September 2009, farmers from 10 villages were free. So the banks have decided to replicate the success in other districts.
According to the SLBC (state level bankers committee) data, compiled by Punjab National Bank, during the financial year 2009-10, the total disbursement target is Rs 27,122.54 crore. Further, the target for the debt swap (on the basis of 3 per cent of agriculture) is 813.68 crore.
None of the private sector and cooperative banks in Punjab have provided assistance to farmers under the Debt Swap Scheme.
Only regional rural banks and public sector banks have assisted the farmers under the scheme.
Of the total debt of over Rs 30,000 crore, the share of the non-institutional loan in the state is about Rs 14,000 crore.
So, banks can play a proactive role in saving the farming community from distress under the Debt Swap Scheme.
The analysis of the bank-wise position reveals that major banks like Andhra Bank, Bank of Baroda, Corporation Bank, Bank of Maharastra, Dena Bank and Indian Bank and all private sector banks have not assisted even a single farmer under the scheme up to September 2009.
