Banks told to give online farm loans

After March 31, a farmer will no longer need to carry a copy of record of rights (RTC) or ‘khata’ to the bank to pledge his land or enhance the loan amount. Reason? The Centre has instructed all banks dealing with farmers to switch over to electronic mode of transactions and close all manual transactions by April 1. Karnataka, equipped with Bhoomi – the project of on-line delivery and management of land records with its electronic database of 200 lakh land records across the state, hopes to achieve paperless transactions through Bhoomi-Bank integration in three phases. All banks will now ‘talk’ to Bhoomi office only electronically – says Rajeev Chawla, secretary of Bhoomi project. “In the first phase, four districts – Tumkur, Mandya, Kolar and Mysore will comply with the mandate. Eleven more districts will completely switch over to electronic transactions by April 2012 and the remaining districts will close all manual transactions by June 2012,” said Chawla, adding that the new system would prevent fraudulent transactions, harassment of farmers and reduce the time taken by the banks to release the loan. “An electronic transaction comes with advantages. It removes human discretion and prevents record manipulation and fraudulent transactions. It helps farmers avoid personal visits to taluk office. The banks can accept the loan request from a farmer, directly download the khata, sanction the loan, raise request for liabilities’ check on the khata and send it to Bhoomi office. The revenue inspector will pass the order within two days,” explained Chawla.

http://www.deccanchronicle.com/channels/cities/bengaluru/banks-told-give-online-farm-loans-727

Assessment of CSC as published in Economic and Political Weekly

Assessment of CSC in EPW

The Economic and Political Weekly published an article on the assessment of the CSC Program based on the study of CSCs in Meghalaya and Uttar Pradesh