new delhi the rs 60000 crore farm loan waiver scheme will strengthen the banking sector in the country fm p chidambaram said on thursday after a postbudget meeting with rbi board on thursday fm said the debt waiver and debtrelief scheme would be implemented in a manner that the banking system is strengthened rather than weakenedhe said i explained debt waiver and debtrelief scheme to the board members and since it was a closeddoor meeting i took them through the contours of the packagerbi governor y v reddy told the board members that the central bank is ready to support and help the government implementing the debtwaiver and debtrelief package chidambaram addedfm assured that as explained by pm manmohan singh on wednesday in parliament banking system would be compensated for loan writeoff in a way that the scheme would not be a constraint on it he added that government rbi and banks would work in a manner that the goals and objectives of the scheme are achievedaccording to a banker source if the government bears the cost of loan waiver it will help banks in converting their distress loan portfolio into a performing assets this he said will help them improve profitability details of the implementation of the farm loan waiver scheme will be announced in parliament during discussion on budget said chidambaram earlier while addressing a postbudget seminar organised by industry chamber assochamfm said the onetrilliondollar indian economy can afford to bear this burden of farm debt waiver there was a compelling need to go for a onetime measure to write off loans of smallest and poorest farmers of india he said generally in nine out of 10 years farmers repay their loans but in that one year they are unable to repay loans due to drought flood or cyclone he said adding if these loans are not waived off and small farmers are not eligible for fresh loans from institutions they would fall in the hands of money lenders fm asked stock brokers to corporatize business to compete with global players in domestic as welll as overseas capital markets corporatizsation brings better standards of governance better transparency increases confidence level of customers fm said he said it will help brokers access markets abroad and tap indian diaspora funds for domestic markets apart from attracting professionals to the familycontrolled business he saidhe said the finance ministry has commissioned a study to the world bank to suggest an effective selfregulatory organisation model for the capital market