Banks have urged Reserve Bank of India to send a notification to farmers stating that they should ensure that their loans are paid on time. Senior bankers said that it is becoming a habit in the part of farmers to delay payment of loans and in some case avoid it totally. Most of them have the expectation that the government would bail them out in case of default.

The issue was raised by bankers in a closed door meeting with top RBI officials.

"Nowadays, banks need to put in extra effort to recover loans from farmers," said a chairman with a public sector bank.

"The job of a politician is to make tall promises and they are doing just that. But we have to work at the ground level and ensure timely recovery," he said. The situation has worsened severely after the announcement of debt waiver schemes.

Bankers also highlighted to the RBI that many farmers who own over 5 acres and had outstanding dues on February 28, 2008, did not avail of the benefit of debt relief.

"We wanted RBI to create an awareness between these farmers so that they repay their loans fully," said a Delhi-based banker.

"Those who haven't taken the debt relief benefit despite the government's repeated attempts to pursue them are mainly willful defaulters. They don't see any gain by clearing their dues as banks are unlikely to grant them loans further as they have earned a bad reputation," said a senior official with National Bank for Agriculture & Rural Development.