What changed
The Government of India extended the last date for 'other farmers' to repay the first instalment under the Debt Relief Scheme from September 30, 2008 to March 31, 2009. The second and third instalment due dates remain March 31, 2009 and June 30, 2009 respectively. The one-month grace period for maintaining standard asset classification is now available only for the first two instalments due on March 31, 2009, with no grace for the final instalment.
What it means for you
Urban co-operative banks must update their repayment schedules for eligible 'other farmers' under the Debt Relief Scheme, reflecting the extended first instalment deadline. Banks need to ensure that the one-month grace period is applied correctly only to the first two instalments, and that the final instalment is paid strictly by June 30, 2009 to preserve asset classification and farmer eligibility. This extension provides temporary relief but requires careful tracking to avoid classification slippages.
What you must do
- Update internal systems to reflect the new first instalment due date of March 31, 2009 for 'other farmers' under the Debt Relief Scheme.
- Communicate the revised schedule and grace period rules to all relevant branches and loan officers handling agricultural debt waiver accounts.
- Monitor repayment of the final instalment strictly by June 30, 2009, as no grace period applies, to maintain standard asset classification.
- Ensure that the one-month grace period is applied only to the first two instalments due on March 31, 2009, and not to the third instalment.
Who it affects
Primary (Urban) Co-operative Banks, Farmers classified as 'other farmers' under the Debt Relief Scheme, Bank branches handling agricultural loan accounts
What is the new deadline for the first instalment under the Debt Relief Scheme?
The last date for 'other farmers' to repay the first instalment has been extended from September 30, 2008 to March 31, 2009.
Is there a grace period for the final instalment due on June 30, 2009?
No, the one-month grace period is available only for the first two instalments due on March 31, 2009. The final instalment must be paid by June 30, 2009 without any grace to maintain standard asset classification.
Does this circular change any other terms of the earlier circulars?
No, all other terms of the earlier circulars dated July 30, 2008 and November 17, 2008 remain unchanged.