It is a space constraint of a different kind, leaving banks in a spot.
Much to their dismay, banks are discovering that the pattadar passbooks, pertaining to the land holding, is offering them little space to record details of the farm loan they extend. In the absence of such a provision, banks are worried that some of the beneficiaries may avail loan from two banks for the same crop.
“One challenge we have flagged with the government is the new pattadar passbook,” SBI Hyderabad Circle Chief General Manager J.Swaminathan said.
Earlier, details regarding the crop loans extended by banks formed part of the revenue records, but in the pattadar passbook, an electronically generated document with security features, there is no provision for incorporating the loan details.
In the earlier system incorporation of Right, Title and Cultivation details helped another bank refrain from disbursing crop loan for the same farmland.
“This is something that came to our knowledge only when the passbooks were issued. Now, we are not in a position to note down our interest in having financed the farmer. This is creating some amount of discomfort at the branches,” Mr. Swaminathan said.
“We have taken it up with the government so that we are allowed to make an endorsement either in the passbook or any other document,” he said. The issue is to come up at the SLBC meet later this week.