Mumbai: A working group set up by the Reserve Bank of India (RBI) has suggested further simplification in the procedures for agricultural loans, especially for small and marginal farmers.

This will reduce the cost and time for obtaining agricultural loan, especially by small and marginal farmers, the RBI said in a release on its website.

While the RBI has already implemented certain recommendations of the working group in its annual policy for 2007-08, it said the report has relevance for various other stake holders, including farmers, banks, state governments and also technology service providers for computerisation, crop mapping services, etc.

The RBI has already advised banks to immediately dispense with the requirement of "no due" certificate for loans up to Rs50,000 to small and marginal farmers, share-croppers and the like and, instead, obtain self-declaration from the borrower.

Banks have also been advised to accept certificates provided by the local administration / panchayati raj institutions regarding the cultivation of crops in case of loans to landless labourers, share-croppers and oral lessees.

This would help overcome the problem faced by the banks in lending to landless labourers, share-croppers and oral lessees due to the absence of documents verifying their identity and status.

State level bankers committee convenors have been asked to set up credit-counselling centres in one district in every state as a pilot and extend it to all other districts in due course.

The RBI has placed the report of the group headed by C.P.Swarnkar, chairman and managing director of Syndicate Bank, on its website for feedback.

Suggestions may be sent to the chief general manager, Rural Planning and Credit Department, Central Office, Mumbai latest by September 21, the RBI said.