Agricultural Debt Waiver Scheme 2008: Implementation Guidelines

RBI/2007-2008/344 RPCD.No.PLFS.BC. 74 /05.04.02/2007-08 May 30, 2008 The Chairman/Managing Director All Scheduled Commercial Banks (including Local Area Banks) Dear Sir, Union Budget – 2008-09 – Agricultural Debt Waiver and Debt Relief Scheme, 2008 Please refer to our circular RPCD.No.PLFS.BC. 72 /05.04.02/2007-08 dated May 23, 2008 , and the Agricultural Debt Waiver and Debt Relief Scheme, 2008, forwarded therewith. Your attention is also invited to our circular RPCD.No.PLFS.BC. 73 /05.04.02/2007-08 dated May 30, 2008 , and the supplementary explanatory instructions issued by Government of India, forwarded therewith. In this connection, we advise that you may follow the operative instructions as given below for smooth implementation of the Scheme. 2. Procedure for reimbursement of claims: One time consolidated claims for the bank as a whole may be submitted by scheduled commercial banks (including Local Area Banks) through their Head Office by September 30, 2008, to Reserve Bank of India,Rural Planning and Credit Department (RPCD), Central Office, Shahid Bhagat Singh Road, Mumbai -400001. Separate consolidated claims may be lodged for waiver and OTS. Consolidated claims in respect of waiver and OTS may be made as per the formats given in ANNEX – I and ANNEX – II respectively. A branch-wise break-up of the claims may be maintained at the Head Office for future reference/check, if necessary. 3. Data Maintenance: Banks are required to maintain additional data as under: a) Detailed borrower wise data along with additional information may be maintained by banks at the branch level in the formats given in Forms IA to VIB . This data is required to be kept ready for inspection/audit and reference, as and when required. The branch-wise data in summary form may also be maintained at the Regional Office/Zonal Office/Head Office levels. b) Banks are also required to maintain State-wise and district-wise data relating to the amounts waived and rebates given under OTS in the respective Head Offices and forward a copy of the same to the respective SLBC Convenor of the State and also to the relevant Regional Offices of Reserve Bank of India (RPCD), who would, in turn, maintain a consolidated State-wise and district-wise position (Bank-wise) in soft form. 4. Monitoring of progress in implementation: The following procedure may be adopted in respect of monitoring of progress in implementation and reporting thereof: a) Banks are advised to form dedicated cells in each State for the purpose of monitoring of progress in implementation of the Scheme. Two nodal officers may be nominated in each of these dedicated cells and their contact numbers and e-mail addresses should be circulated among the banks in that State through the State Level Bankers’ Committee (SLBC). These officers would be responsible for dissemination of the progress report to the SLBC Convenor Bank. b) The SLBC Convenor Bank shall similarly form a dedicated cell and nominate two nodal officers, as above. These nodal officers would be responsible for consolidation and dissemination of State-wise Bank-wise data to the Regional Office concerned of Reserve Bank. c) The formats for reporting position by banks and the SLBC Convenors are given in Annex - IIIA , Annex - IIIB . Branches should report the position daily to their controlling offices, which, in turn, may report the positions to the SLBC Convenor on every Monday. The SLBC Convenor shall consolidate and report the position State-wise, Bank-wise, by the next day, i.e., Tuesday, to the concerned Regional Office of the Reserve Bank. d) A special Steering Committee of the SLBC may be formed to oversee the above aspect and also monitor the implementation of the Scheme. 5. Procedure for Audit of the claims: Banks may prepare the claims duly audited as a part of internal audit exercise at the branch level. Branch-wise claims, thereafter, may be forwarded to the respective controlling offices accompanied by the necessary certificate from the internal auditors. These claims may be further consolidated at the Head-Office level on the basis of internal audit certificates. The consolidated claims may be subjected to suitable sample check by the Central Statutory Auditors, who may be entrusted this job as a special assignment by banks. For this purpose, the Statutory Auditors may cover a representative sample of branches and accounts, of at least 20 per cent, so as to certify the correctness of the claims. The consolidated claims for the bank as a whole may be submitted for reimbursement duly certified by the Central Statutory Auditors. The Central Government, if it is satisfied that it is necessary to do so, may also direct a special audit in the case of any lending institution or one or more branches of such lending institution. 6. Income Recognition and Asset Classification: A separate circular would be issued by our Department of Banking Operations and Development in this regard. 7. Formats for Letter of Undertaking and Certificate of Debt Waiver/Relief (Paras 7 and 9 of the Scheme): The formats for Letter of Undertaking to be given by ‘other farmers’ for OTS and Certificate of Debt Waiver/Relief , as stated in the Scheme, will follow. 8. In case of RRBs and co-operatives, instructions will be issued by NABARD. Yours faithfully, (G.Srinivasan) Chief General Manager – in – Charge ANNEX – I Agricultural Debt Waiver & Debt Relief Scheme 2008 NAME OF THE BANK: Consolidated claim for the amount in respect of loan waiver We hereby submit our claim for reimbursement of the amount of loan waiver in respect of direct agricultural loans disbursed between March 31, 1997 and March 31, 2007 and overdue as on December 31, 2007, which remained unpaid until February 29, 2008 to ‘ small and marginal farmers’ and for loans for allied activities upto Rs. 50,000/- under the above Scheme. State-wise and district –wise break-up in this format is retained at Head Office for check/reference. (No. of accounts in thousands and amounts in Rs. actuals ) CATEGORY OF LOANS

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/344 · issued 30 May 2008. The plain-English explanation above is BankPulse’s own independent summary.

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