What changed
The RBI circular provides supplementary explanatory instructions from the Government of India regarding the Agricultural Debt Waiver and Debt Relief Scheme 2008. It clarifies eligibility conditions for direct agricultural loans, including specific dates for disbursement, overdue status, and repayment. It also details how restructured investment credit loans are treated under the scheme.
What it means for you
Banks must now strictly apply the three eligibility conditions for debt waiver: loans disbursed between March 31, 1997 and March 31, 2007, overdue on December 31, 2007, and unpaid until February 29, 2008. For restructured investment credit, only overdue instalments at restructuring and those falling due by December 31, 2007 qualify. This ensures uniform implementation across all scheduled commercial banks and local area banks.
What you must do
- Immediately circulate the supplementary instructions to all field-level officials and functionaries.
- Ensure staff are fully trained on the three eligibility conditions for debt waiver/debt relief.
- Apply the correct treatment for restructured investment credit loans as per the annex.
- Coordinate with NABARD for RRBs and cooperatives as they issue separate instructions.
- Prepare for the upcoming circular on claims submission, monitoring, and audit.
Who it affects
All Scheduled Commercial Banks (including Local Area Banks), Field-level bank officials and functionaries, Agricultural loan borrowers (marginal, small, and other farmers), NABARD (for RRBs and cooperatives)
What are the three conditions for a loan to be eligible under the scheme?
The loan must be disbursed between March 31, 1997 and March 31, 2007, overdue on December 31, 2007, and remain unpaid until February 29, 2008.
How are restructured investment credit loans treated?
Only the instalments that were overdue at the time of restructuring, plus instalments that were not due then but fell due by December 31, 2007, are eligible for waiver or relief.
Does the scheme cover loans given to agricultural credit cooperative societies?
Yes, loans granted by banks to such societies that are lending institutions for advancing direct agricultural loans to farmers are covered.