What changed
The cut-off date for completing disbursement of loans sanctioned under the PMRY programme year 2004-05 for Assam has been extended from July 31, 2005 to December 31, 2005. This extension was granted by the Ministry of A & RI, Government of India, in view of difficulties faced by banks due to heavy floods in the state.
What it means for you
Banks operating in Assam now have an additional five months to disburse PMRY loans for the 2004-05 cycle, reducing the risk of non-compliance due to flood-related disruptions. This gives lenders more time to process pending cases without penalty, but they must ensure all disbursements are completed by the new deadline to avoid regulatory issues.
What you must do
- Issue instructions to all regional/controlling offices and branches in Assam to extend the disbursement cut-off to December 31, 2005 for PMRY loans sanctioned under 2004-05.
- Update internal systems and reporting mechanisms to reflect the revised deadline for Assam.
- Monitor flood-affected branches to ensure timely disbursement of pending sanctioned cases.
- Acknowledge receipt of this circular to RBI as instructed.
Who it affects
All Indian scheduled commercial banks (excluding RRBs) with branches in Assam, Regional and controlling offices of banks in Assam, Branches implementing PMRY loans in Assam
Why was the cut-off date extended only for Assam?
The extension was granted specifically for Assam because heavy floods in the state made it difficult for bank branches to complete disbursements by the original deadline of July 31, 2005.
Does this extension apply to other states or previous programme years?
No, this circular applies only to the PMRY programme year 2004-05 for the state of Assam. Other states or years are not covered.
What should banks do if they have already disbursed loans before the original deadline?
No action is needed for already disbursed loans. The extension only affects cases sanctioned but not yet disbursed by July 31, 2005.