What changed
RBI provided standard formats for the undertaking that 'other farmers' must give for OTS relief, specifying payment instalment dates. It also prescribed formats for certificates of debt waiver for small/marginal farmers and OTS settlement certificates for other farmers, with an acknowledgement requirement.
What it means for you
Banks now have clear, uniform documentation to process the 2008 agricultural debt waiver scheme. This reduces ambiguity in OTS settlements and ensures proper record-keeping for waived loans. Compliance with these formats is mandatory for all scheduled commercial banks.
What you must do
- Use the prescribed format (ANNEX I) for undertakings from 'other farmers' opting for OTS relief.
- Issue debt waiver certificates (ANNEX II) to small/marginal farmers upon waiver of eligible amount.
- Issue OTS settlement certificates (ANNEX III) to other farmers, mentioning eligible amount, farmer's share, and relief amount.
- Obtain an acknowledgement from the farmer when issuing the certificate.
- Ensure instalment payments from other farmers follow the specified due dates: Sep 30, 2008; Mar 31, 2009; Jun 30, 2009.
Who it affects
All Scheduled Commercial Banks (including Local Area Banks), RRBs and co-operatives (via NABARD instructions), Small and marginal farmers eligible for debt waiver, Other farmers eligible for OTS relief
What is the format for the undertaking that 'other farmers' must give for OTS?
The format is provided in ANNEX I of the circular. It requires the farmer to agree to pay his share in up to three instalments, with the first two being at least one-third of his share each, by the specified due dates.
What certificate should a bank issue to a small/marginal farmer after debt waiver?
The bank must issue a certificate (ANNEX II) stating that the loan has been waived and clearly mentioning the eligible amount waived. An acknowledgement from the farmer must be obtained.
What are the due dates for OTS instalments for 'other farmers'?
For three instalments, the due dates are: September 30, 2008; March 31, 2009; and June 30, 2009.