Date:02/05/2007 URL: http://www.thehindu.com/2007/05/02/stories/2007050203151400.htm

National

Farmers need not submit `no due' certificate

Special Correspondent

NEW DELHI: The Reserve Bank of India has waived the condition for farmers to submit a `no due' certificate for obtaining bank loans up to Rs. 50,000. Instead, banks have been directed to provide such small loans to farmers on the basis of a self-declaration.

Announcing this in a notification, the RBI said the present procedure to produce the NDC from various banks or cooperative financial institutions operating in the area to get loans from any of the commercial banks ``entails considerable amount of time and money.''

The RBI also asked the commercial banks to provide loans for crop cultivation to landless labourers, sharecroppers and oral lessees against certificates of identity and status issued by the local administration, including panchayati raj institutions.