No Dues Certificates by Banks

Reserve Bank of India (RBI) have advised Scheduled Commercial Banks (including Regional Rural Banks) to dispenser with the requirement of ‘no dues’ certificate for small loans upto ₹ 50,000/- to small and marginal farmers, share-croppers etc and instead obtain self-declaration from the borrowers.

The RBI has not received any complaints against any bank for non-compliance of the said directions in the recent past.

This information was given by the Minister of State of Finance, Shri Jayant Sinha in written reply to a question in Lok Sabha.