Debt weiver & Relief Scheme ( DWRS-2008 )

In consonance with the recommendations made by the Radhakrishnan Committee, the Govt. of India announced Debt Relief Scheme(DRS) in its budget announced in Feb,08. The total overdue loans were estimated to be around Rs.71,680 crores.. The guidelines under DRS are as under:-

• All the agricultural loans disbursed by scheduled commercial banks, Regional Rural Banks and Co operative Credit Institutions up to March 31, 2007 and overdue as on December 31, 2007 are covered under this scheme.
• For Small and Marginal Farmers, there will be a complete waiver of the loans that were overdue as on December 31, 2007, and which were unpaid until February 29, 2008.
• The Rescheduled Agriculture loans during the years 2004 and 2006 are also eligible either for complete waivers or One Time Settlement.(OTS)
• The implementation of DRS should be completed by June 2008 and the farmers is entitled to fresh agriculture loans.
• The waived amount will be released in five instalments to the financing banks over a period of five years and completed by 2012