MINISTER OF STATE IN THE MINISTRY OF FINANCE (PAWAN KUMAR BANSAJL)
(a) &(b):- Various measures have been taken to simplify the loan process with a view to
ensure easy flow of credit to farmers. These, inter alia, include ;
(i) Banks have been advised to simplify procedures while providing loans to farmers at
reasonable rates of interest and use iheir discretion in respect of margin money and
security norms. Loans upto Rs. 50,000/- are free from collateral and margin requirements.
(ii) One page documentation has been circulate among banks for adoption.
(iii) Branch Managers have been delegated adequate powers to expeditiously sanction
loans to farmers at their level itself.
(iv) Instructions to issue Kisan Credit Cards (KCCs) within 15 days of receiving the
application. Regional Rural Banks (RRBs) have been advised to undertake an aggressive
branch expansion programme in 2007-08 They have further been advised to open at least
one branch in each of the 80 uncovered districts of the country.
(c) & (d):- Excepting the 80 uncovered districts, there is no shortage of branches of
Regional Rural Banks {RRBs) in the country. The branches are opened keeping in view their
commercial viability. As on March 31, 2006, 133 RRBs were operating in 525 districts of
the country with a network of 14494 branches.
(e):- As per Section 3 of the Regional Rural Banks Act, 1976, the Centra! Government may,
if requested so lo do by a sponsor bank, by notification in (he Official Gazette, establish
in a State or Union Territory, one or more Regional Rural Banks. At present, no such proposal
has been received from any of the sponsor bank for establishment of an RRB.
(F):- The simplification of loan process is on the basis of RBI guidelines RRBs have been
advised to aggressively undertake the expansion of branches and make efforts to open at
least one branch in each of the 80 uncovered districts
