Agri Debt Waiver Scheme 2008: Additional Instructions for Banks
Current · Source: Reserve Bank of India · RBI/2007-2008/366 · issued 13 Jun 2008 · ~2 min read
Quick answerRBI issued additional instructions for implementing the Agricultural Debt Waiver and Debt Relief Scheme 2008, including formats for farmer undertakings and bank certificates. Banks must use these formats for OTS settlements and waiver certificates.
The rule, in the simplest words
Banks must use the exact format (ANNEX I) for the promise form that 'other farmers' (farmers who are not small or marginal) sign when they agree to pay back part of their loan in installments.
When a small or marginal farmer (a farmer with very little land) gets their loan completely forgiven, the bank must give them a certificate (ANNEX II) that says the loan is waived and shows the amount that was forgiven.
For 'other farmers' who get a discount on their loan (OTS relief), the bank must give them a certificate (ANNEX III) that lists the total eligible amount, how much the farmer paid, and how much the bank forgave.
The bank must get a signed receipt (acknowledgement) from the farmer whenever it gives them a waiver or settlement certificate.
If an 'other farmer' pays in three installments, the due dates for those payments are fixed: September 30, 2008; March 31, 2009; and June 30, 2009.
How it plays out — a real example
An agri & priority-sector lending officer in Indore is processing a debt waiver for a small farmer named Ravi. After waiving Ravi's eligible loan amount, the officer prints the official ANNEX II certificate, fills in Ravi's name and the waived amount, and hands it to him. The officer then asks Ravi to sign an acknowledgement slip to confirm he received the certificate, keeping a copy in the bank's records.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/366
RPCD.No.PLFS.BC.
76 /05.04.02/2007-08
June 13, 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.
2. In
this connection, we forward certain additional instructions for smooth implementation
of the Scheme.
A. Format for Undertaking to be given
by ‘other farmers’ for OTS:
As per item no. 7 of the
Scheme, a farmer classified as ‘other farmer’ eligible for OTS relief shall give
an undertaking agreeing to pay his share (that is eligible amount minus the amount
of OTS relief) in not more than three instalments and the first two instalments
shall be for an amount not less than one-third of his share. The last dates of
payment in the case of three instalments will be September 30, 2008; March 31,
2009 and June 30, 2009. The format for such an undertaking is given in ANNEX
– I .
B. Format for the Certificate of Debt Waiver
and Debt Relief:
As per item no. 9 of the captioned
Scheme, in the case of small and marginal farmers, upon waiver of the eligible
amount, the lending institution shall issue a certificate to the effect that the
loan has been waived and specifically mention the eligible amount that has been
waived.
In
the case of ‘other farmers’, upon granting OTS relief, the lending institution
shall issue a certificate to the effect that the loan account has been settled
to the satisfaction of the lending institution and specifically mention the eligible
amount, the amount paid by the farmer as his share and the amount of OTS relief.
Upon issuing the certificate the lending institution shall take an acknowledgement
from the farmer.
The formats for such Certificates are
given in ANNEX
– II and ANNEX
III respectively.
4. In case of RRBs and co-operatives,
instructions are being issued by NABARD.
Yours faithfully,
(G.Srinivasan)
Chief
General Manager – in – Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/366 · issued 13 Jun 2008. The plain-English explanation above is BankPulse’s own independent summary.
Issue OTS settlement certificates (ANNEX III) to other farmers, mentioning eligible amount, farmer's share, and relief amount.
📜 Compliance
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.
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.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (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), your first concrete step on “Agri Debt Waiver Scheme 2008: Additional Instructions for Banks” is: “Use the prescribed format (ANNEX I) for undertakings from 'other farmers' opting for OTS relief.” (RBI issued this 13 Jun 2008).
Action required: Use the prescribed format (ANNEX I) for undertakings from 'other farmers' opting for OTS relief.
Action required: Issue debt waiver certificates (ANNEX II) to small/marginal farmers upon waiver of eligible amount.
Action required: Issue OTS settlement certificates (ANNEX III) to other farmers, mentioning eligible amount, farmer's share, and relief amount.
Action required: Obtain an acknowledgement from the farmer when issuing the certificate.
Action required: Ensure instalment payments from other farmers follow the specified due dates: Sep 30, 2008; Mar 31, 2009; Jun 30, 2009.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4233&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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