Haryana's Tech-Driven Farm Credit System to End Farmers' Bank Runs

The government will soon sign a memorandum of understanding with the Reserve Bank of India to develop one of India's most advanced integrated farm credit systems.

Under this framework, sanction of agricultural loans will be directly linked with digitised land records, ensuring seamless coordination between financial institutions and the revenue administration.

Sharing details of the initiative, Sumita Misra said the new system represents a fundamental shift in the way agricultural credit is delivered. She said farmers will now need only their Aadhaar number to access loans, as all land-related particulars will be automatically fetched from the state's digital record.

"This is not just a technological upgrade but a complete reimagining of public service delivery for farmers. The long-standing patwari-tehsil-bank cycle that caused delays will be eliminated," she said in a statement.

The project will be implemented in two phases. The first phase will focus on Kisan Credit Card loans, the most widely used agricultural credit instrument in the state.

Upon Aadhaar authentication, land details will be auto-fetched, loan-related entries will be automatically recorded in land records, and encumbrance entries will be removed instantly upon repayment.

The entire process will function with zero-human intervention, ensuring maximum transparency.

In the second phase, the system will be expanded to cover all forms of agricultural and rural lending, creating a unified digital credit ecosystem across the state. She said the initiative offers significant benefits to all stakeholders.

Farmers will save time, gain faster access to credit, and enjoy complete transparency through real-time tracking of loan status and land records. Banks and financial institutions will receive authenticated land data in real time, reducing risks associated with fraudulent applications and improving operational efficiency.

The revenue administration will benefit from self-updating records, reduced errors, and enhanced credibility of land records. The real-time integration between revenue records and lending institutions will also act as a strong safeguard against fraud and malpractice.

Any attempt to use forged documents or outdated records will be automatically detected by the system, thereby protecting both lenders and genuine farmers, she added.

- IANS