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Ensure smooth delivery of farm credit, RBI tells public sector banks

The Reserve Bank of India deputy governor Jagdish Capoor exhorted the banks to ensure field level implementation of the R V Gupta Committee recommendations by providing necessary guidance to smooth delivery of farm credit.

He addressed a meeting of chairmen and managing directors, executive directors and other top executives of public sector banks to review the progress in implementation of the Gupta Committee recommendations in Bombay today.

Bankers informed the RBI that they have initiated action for implementing the recommendations and every bank has set up an internal monitoring mechanism at a senior level to speed up the process.

The bankers also informed the central bank that they have delegated sufficient powers to the branch level officials to enable them to dispose of between 90-95 per cent loan applications and many of them also started disbursing loans in cash and have introduced kisancredit card while others are in the process of introducing it.

Procedural aspects, such as, application forms, collaterals and obtaining no-due certificates, have been streamlined in keeping with the gupta committee recommendations.

Many banks are experimenting with composite cash credit and the new loan product with in-built savings module. Rationalisation of internal returns, loan documents and performance appraisals for agricultural loans, were being considered at the Indian Banks' Association and the Gupta Committee recommendations on this subject would be implemented soon after the IBA recommendations are finalised, bankers said.

UNI