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Recovery of Bank Loans

March 15, 2013‐ New Delhi, India

Based on the observations made by the Office of the Comptroller and Auditor General of India (C&AG) on the implementation of the Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) 2008, the Government had issued instructions to the Reserve Bank of India (RBI) to advise banks to take immediate corrective measures. Accordingly, circulars have been issued to all Public Sector Banks, Private Sector Banks, Urban Cooperative Banks and Local Area Banks, for which RBI was the implementing Agency for the Scheme, to comply with the Government directions. It has inter-alia, been advised as under:

i) The beneficiaries’ lists need complete verification with priority being given to areas where indebtedness was high.

ii) Administrative/accounting lapses on the part of the officials, internal auditors and statutory auditors who were responsible for verification, certification, or for passing the claims be identified and accountability fixed for the lapses.

iii) Cases of extending benefits to ineligible beneficiaries must be dealt with on top priority and full recoveries as per law must be made to ensure no loss to the exchequer.

iv) All cases of tampering of records or alteration etc, must be identified and scrutinized by higher authority. Stringent action under relevant sections of law against those responsible must be initiated.

Banks have been, inter-alia, advised to indicate specifically, in terms of the monthly reporting format, if any criminality has been detected and if any FIRs have been lodged etc.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

DSM/RS/ka

(Release ID :93756)

Press Release Source: PIB

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