•The farm loan waiver is the starting
point of farmers not looking forward to genuinely pay back loans expecting that
Govt of either central govt or state govt clear of loans. Chidambaram did wrong
strategy to win back votes. Similarly he did next time for students loan
waivers. Psychologically some farmers who are capable of paying back loans have
also avoided seeing their neighbours and villagers not paying expecting loan
waiver will
happen.
•Also loan waiver was failure because Village officers, Tahsildar's, panchayats officers ate all the money which was supposed to go to farmers. Govt and banks wanted to clear loans but they did not have list of all farmers their land details and did not calculate how much to give and they directly to VAO and panchayats officers at that point they took the entire crores of money and large farmers in those areas snubbed small farmers and took all the money. It was a total failure of banks, RBI (organisation which sleeps always except monetary policy), Finance Ministry (gives ideas but doesn’t know how to complete fully till root level), Village officers and panchayats (fully corrupted), banks (officers don’t visit plot directly and check status, sit in branch always)
•Solution: 1. Do digitisation of land records of all farm lands first in all states and say in future loan waivers wont be given if land records are not digital for those states. Anyway you should avoid loan waivers in future for loan restructuring for farmers also depend on the digital land records of farmers. So for any loan the digital record should be mapped to bank account so if the farmer doesn’t pay loan stating the rain or drought the bank official with the digital record with GPS location can go and visit area and send report to higher officials and Fin ministry, RBI on crop failure. 2. Finance ministry when announcing package for states and even state govt can use data from banks, small finance companies. 3. Banks must be given instruction on loan restructuring on crop failure, rains, drought, etc,. Directly by head office based on photo of crop damage with GPS location, date mapped to the photo taken with special software in mobiles 4. Digitisation of records in Andhra was used by local agents to take up some lands which remained and did not be part of either farmer or govt. Hence digitisation must be done with inspection of best IT systems and fool proof methods on discussion with farmers, all banks located in villages, state finance team 5. Crop insurance being denied by banks need to be corrected 6. If a crop fails, the crop insurance taken for farm loans need to be used to restructure loans and provide funds for next crop in their bank account directly. VAO or Tahsildar must not be involved to verify the crop failure they ask for bribe to give certificates. Farmers feel angry that they have to do so much paperwork. I have some level of confidence still in banks in villages or villagers must be created an app to directly report crop failure to centre, RBI, banks through app which will note the GPS location of land, date of photo taken, farmer standing near land with photo of his land in back, verified with digital record by using GPS & in repository, aadhaar card, biometric to transfer money to A/C
•In future do restructuring of farm loans, educational loans only by increasing the duration of repayment, reduce interest rates but don’t waive off entirely. Whatever technology you do everyone will find loop holes and do fraud. Do not psychologically make anyone wait for loan waiver focus on restructuring similar to corporate loans. Have real time data.
•Also loan waiver was failure because Village officers, Tahsildar's, panchayats officers ate all the money which was supposed to go to farmers. Govt and banks wanted to clear loans but they did not have list of all farmers their land details and did not calculate how much to give and they directly to VAO and panchayats officers at that point they took the entire crores of money and large farmers in those areas snubbed small farmers and took all the money. It was a total failure of banks, RBI (organisation which sleeps always except monetary policy), Finance Ministry (gives ideas but doesn’t know how to complete fully till root level), Village officers and panchayats (fully corrupted), banks (officers don’t visit plot directly and check status, sit in branch always)
•Solution: 1. Do digitisation of land records of all farm lands first in all states and say in future loan waivers wont be given if land records are not digital for those states. Anyway you should avoid loan waivers in future for loan restructuring for farmers also depend on the digital land records of farmers. So for any loan the digital record should be mapped to bank account so if the farmer doesn’t pay loan stating the rain or drought the bank official with the digital record with GPS location can go and visit area and send report to higher officials and Fin ministry, RBI on crop failure. 2. Finance ministry when announcing package for states and even state govt can use data from banks, small finance companies. 3. Banks must be given instruction on loan restructuring on crop failure, rains, drought, etc,. Directly by head office based on photo of crop damage with GPS location, date mapped to the photo taken with special software in mobiles 4. Digitisation of records in Andhra was used by local agents to take up some lands which remained and did not be part of either farmer or govt. Hence digitisation must be done with inspection of best IT systems and fool proof methods on discussion with farmers, all banks located in villages, state finance team 5. Crop insurance being denied by banks need to be corrected 6. If a crop fails, the crop insurance taken for farm loans need to be used to restructure loans and provide funds for next crop in their bank account directly. VAO or Tahsildar must not be involved to verify the crop failure they ask for bribe to give certificates. Farmers feel angry that they have to do so much paperwork. I have some level of confidence still in banks in villages or villagers must be created an app to directly report crop failure to centre, RBI, banks through app which will note the GPS location of land, date of photo taken, farmer standing near land with photo of his land in back, verified with digital record by using GPS & in repository, aadhaar card, biometric to transfer money to A/C
•In future do restructuring of farm loans, educational loans only by increasing the duration of repayment, reduce interest rates but don’t waive off entirely. Whatever technology you do everyone will find loop holes and do fraud. Do not psychologically make anyone wait for loan waiver focus on restructuring similar to corporate loans. Have real time data.
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