Relief Measures for Poultry Industry (2008) – UCBs

RBI/2007-2008/253 UBD.PCB.Cir.No. 34 /09.14.000/07-08 March 3, 2008. The Chief Executive Officers of All Primary(Urban) Co-operative Banks Dear Sir/Madam Guidelines for Relief Measures by Banks to Poultry Industry (2008)-UCBs As you are aware, there have been instances of outbreak of Avian Influenza (bird flu) in some areas of the country. Keeping in view the loss of income that has occurred due to culling of birds as well as steep fall in the demand for poultry products and their prices, banks may consider extending the following facilities to poultry units financed by them : (i) Principal and interest due on working capital loans as also installments and interest on term loans which have fallen due for payment on / after the onset of bird flu, i.e. December 31, 2007 and remaining unpaid may be converted into term loans. The converted loans may be recovered in installments based on projected future inflows over a period up to three years with an initial moratorium of up to one year (the first year of repayment may be fixed after the expiry of moratorium period). (ii) The remaining portion of term loans may be rescheduled similarly with a moratorium period up to one year depending upon the cash flow generating capacity of the unit. (iii) The reschedulement / conversion may be completed on or before April 30, 2008. (iv) The rescheduled / converted loans may be treated as current dues. (v) After conversion as above, the borrower will be eligible for fresh need based finance. (vi) The relief measures as above may be extended to all accounts of poultry industry, which were classified as Standard accounts as on December 31, 2007. Yours faithfully, (A.K Khound) Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/253 · issued 03 Mar 2008. The plain-English explanation above is BankPulse’s own independent summary.

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