BENGALURU: Even farmers who have deposits in cooperative societies/banks will now be eligible to avail crop loan waiver of up to Rs 1 lakh, according to the amendments to the waiver scheme. The JD(S)-Congress coalition government on Monday issued a fresh government order making amendments to regulations for loan waiver scheme in cooperative societies.
According to the amendments, the government has decided to drop the regulation that allowed funds in a farmer’s matured deposit in any cooperative bank/society or commercial banks to be deducted from the current outstanding amount in a loan account.
The government, which was keen on depositing the loan waiver amount into farmers’ savings account through direct transfer benefit, has now made an amendment to allow cooperative societies to deposit the waiver amount in loan accounts instead. The funds will, however, be routed to loan accounts through savings accounts of eligible farmers.
“Irrespective of how much deposits farmers have in cooperative banks, they will be eligible for the waiver. Earlier, a farmer who had a time deposit account in cooperative societies was not covered under the scheme but we have made fresh amendments now. With this, loans of about 20 lakh farmers in cooperative societies will be waived off completely,” said Minister for Cooperation Bandeppa Kashempur.
Cooperatives have been asked to submit receipts of loans before October 5. “Based on the information the banks provide, loans up to next July 20 will be waived off as per renewal date of each loan account,” he said. The government has estimated Rs 9,448 crore will be repaid in waiver over the next nine months.
The office or regulator of co-ops has issued a circular on regulations to accept, evaluate and categorise applications. To avoid red-tapism, the government will make the process online. The head of the family, who wishes to avail the waiver, has to submit the application along with documents to banks from where loans were availed.
Amendments
Waiver money to be transferred to farmer’s savings account but DCC banks to transfer the funds immediately to loan accounts in cooperative societies /banks.
Salaried persons, pensioners and taxpayers to submit self-declaration/affidavit to be considered for the waiver.
Deposits that have matured will not be deducted from the outstanding loan amount.
Cooperative societies to claim waiver amount after the Finance Department’s approval of regulations.