Finance minister P. Chidambaram with Delhi chief minister Sheila Dikshit in New Delhi on Thursday. (PTI)

New Delhi, June 19: Finance minister P. Chidambaram today told public sector banks to come out with the list of farmers eligible for a loan waiver by June 25.

“On June 25, we hope to get the list (of farmers),” the minister told the chiefs of public sector banks through video-conferencing.

Chidamabaram has asked banks to expedite the implementation of the loan waiver package and complete the scheme by June 30, as outlined in this year’s budget.

Farmers can then rid themselves of the defaulter tag and be eligible for fresh credit.

State-run banks would check the accuracy and integrity of the statements being made by the agricultural borrowers seeking relief.

“On June 24, financial services secretary Arun Ramanathan will get in touch with PSU banks’ chairmen to get the confirmation that the list is prepared,” the minister said.

Farmers will be eligible for fresh loans only after the clearance of their dues.

Bankers said they had already started preparing the list and would have no problem in submitting it within the deadline. The finance minister clarified that the interest not serviced as on December 31, 2007 would be included for the purpose of the waiver not only for short-term production loans but also for investment loans. Production loans are given for raising crops, while investment loans can be used for asset financing and allied activities. In his budget speech, the finance minister had set June 30 as the deadline for waiving the debt of farmers with holdings up to three hectares.

The size of the loan waiver was subsequently enhanced to Rs 71,680 crore, and the coverage widened to include seven million more marginal and small farmers, taking the number of such beneficiaries to 43 million from the originally proposed 40 million.

The finance minister also asked the banks to make sure that certificates and undertakings for the waiver are given to farmers in their languages.

Financial inclusion

Chidambaram today said he was hopeful of financial inclusion becoming a reality in about three to five years and asked the poor who have access to banks not to go to money lenders.

“Every poor is entitled to a life of dignity and decency. Please do not go to money lenders any more. If you go, then I will be a total failure,” Chidambaram said while launching a pilot micro credit scheme here.