Farmers exempted from NDC: RBI simplifies loan process

Farmers exempted from NDC: RBI simplifies loan process
Comment E-mail Print Share
First Published: Tue, May 01 2007. 04 36 PM IST
Updated: Tue, May 01 2007. 04 36 PM IST
By UPD
Mumbai, May 1 (PTI) The Reserve Bank of India has exempted farmers from submitting “no due” certificate (NDC) for obtaining loans up to Rs 50,000 from banks.
Bankers have been asked to provide small loans to farmers on the basis of a self-declaration in lieu of the NDC, an RBI notification said.
At present, farmers have to produce the NDC from various banks or co-operative institutions operating in the area to get loans from any commercial bank. This “entails considerable amount of time and money”, the notification said.
The central bank has asked commercial banks to give loans to landless labourers, share croppers and oral lessees against the certificates of identity and status issued by the local administration, including the panchayati raj institutions, for cultivation of crops.
RBI has relaxed the norms for lending to farmers in pursuance of the proposals announced in the annual credit policy recently. The central bank had proposed to streamline lending norms for farm sector in light of the Swarnkar panel report to examine procedures and processes for farm loans. PTI NBH CS UPD
Comment E-mail Print Share
First Published: Tue, May 01 2007. 04 36 PM IST