(a) whether the farmers have to obtain `No Objection Certificates` from all the banks of their area
to seek crop loans from the Government ;
(b) if so, the details thereof ;
(c) whether this scheme has been introduced in all the States and by all the banks ;
(d) if so, whether banks are charging uniform fee for issuing NOC ;
(e) whether the Government are contemplating to direct the banks to issue NOCs free of cost in the
interest of the farmers; and
(f) if so, the details thereof ?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) to (f) Reserve Bank of India had dispensed with production of `No dues Certificate
by borrowers as a compulsory requirement in 1998 to avoid delay in sanction and
disbursement of loans.However, banks at their discretion may take steps considered
necessary to avoid multiple financing.
RBIs mid-term review of the annual policy statement for the year 2004-05 had dispensed
with the restrictive provisions of the Service Area Approach SAA).Accordingly.scheduled commercial banks including RRBs,were advised in December
2004,to dispense with requirement of obtaining `no dues certificate` from the service
area branch for lending by non-service area branch also.
Similarly,NABARD Had issued insstructions to Registrar of Cooperative Societies
to dispense with production of no dues certificate form banks/institutions by
borrowers as a compulsory requirement.
RBI and NABARD have not issued any instruction to banks in respect of charges
for the purpose of issue of no dues certificate.