What changed
RBI provided two new standardized formats: one for the undertaking by 'other farmers' opting for One-Time Settlement (OTS) relief, and another for certificates of debt waiver (for small/marginal farmers) and debt relief (for other farmers). The undertaking format specifies payment of the farmer's share in up to three installments with last dates of September 30, 2008, March 31, 2009, and June 30, 2009. The certificate formats require banks to mention eligible amounts, amounts paid, and relief granted, with an acknowledgement from the farmer.
What it means for you
Urban Co-operative Banks now have clear, uniform documentation to process the Agricultural Debt Waiver and Debt Relief Scheme, reducing ambiguity in OTS and waiver claims. This helps banks comply with scheme requirements and avoid disputes with farmers or auditors. Banks must ensure these formats are used for all eligible accounts to maintain consistency and audit readiness.
What you must do
- Adopt the prescribed undertaking format (ANNEX I) for 'other farmers' opting for OTS relief, ensuring installment payment deadlines are communicated.
- Issue debt waiver certificates (ANNEX II) to small/marginal farmers and debt relief certificates (ANNEX III) to other farmers upon settlement.
- Obtain an acknowledgement from the farmer when issuing the certificate, as required by the scheme.
- Acknowledge receipt of this circular to your respective Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Farmers eligible under the Agricultural Debt Waiver and Debt Relief Scheme, 2008
What are the key deadlines for 'other farmers' under the OTS installment plan?
For three installments, the last payment dates are September 30, 2008, March 31, 2009, and June 30, 2009. The first two installments must each be at least one-third of the farmer's share.
What must be included in the certificate for small and marginal farmers?
The certificate must state that the loan has been waived and specifically mention the eligible amount that was waived. The farmer must provide an acknowledgement upon receipt.