Home › Circulars › RBI/2008-09/89

Agricultural Debt Waiver: Composite Loans for Livestock Now Eligible

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/89 · issued 03 Jul 2008 · ~1 min read
Quick answerRBI clarifies that composite loans for poultry, sheep, piggery, or cattle farming—including amounts used for sheds, pens, or fences—are fully eligible under the 2008 Agricultural Debt Waiver Scheme. Standalone loans for such structures remain excluded.

What changed

The Government of India modified the clarification on query No.33 from the earlier June 20, 2008 circular. Now, for composite loans covering both livestock and related infrastructure (sheds, pens, fences), the entire loan amount counts toward the eligible amount. Previously, the treatment of such components was less clear.

What it means for you

Primary urban cooperative banks must now include the full composite loan amount for poultry, sheep, piggery, or cattle farming when calculating eligibility under the debt waiver scheme. This expands relief for farmers with integrated operations. Standalone loans for only sheds or fences remain outside the scheme, so banks need to distinguish between composite and standalone loans.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Primary (Urban) Cooperative Banks, Branches handling agricultural loan portfolios, Farmers with composite loans for poultry, sheep, piggery, or cattle farming

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this clarification apply to all livestock loans?

It specifically covers composite loans for poultry farming, sheep rearing, piggery, or cattle farming where part of the loan is used for sheds, pens, or fences. Standalone loans for only those structures are not covered.

What should banks do if they previously excluded such composite loans?

Banks should revisit those cases and include the full composite loan amount in the eligible amount as per the modified clarification, ensuring smooth implementation of the scheme.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2157: UBD.PCB.Cir.No.2/13.05.000/2008-09 — "Union Budget - 2008-09 - Agricultural Debt Waiver and Debt Relief Scheme,2008" dated July 3, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/89 UBD.PCB. Cir .No.2/13.05.000 /2008-09 July  3, 2008 The Chief Executive Officer of All Primary (Urban) Co-op. Banks Dear Sir/Madam Union Budget -2008-09 – Agricultural Debt Waiver and Debt Relief Scheme,2008 Please refer to our  Circular No. UBD.PCB. Cir. No. 58/13.05.000/2007-08 dated June 20, 2008  on the captioned subject. 2.The clarification provided against query No.33 in the above circular has been modified by  Govt. of India as under: “If the loan is for poultry farming or sheep rearing or piggery or a cattle farm and part of the loan amount is used for sheds, pens, fences etc., the entire composite loan amount would be reckoned for calculating ‘eligible amount’ as defined in the scheme. If it is a standalone loan for putting up fencing or sheds etc, these would not be covered.” 3. This modified clarification may be made available to all the branches for smooth implementation of the Scheme. Yours faithfully (Uma Shankar)  Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/89 · issued 03 Jul 2008. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forAgriculture Field OfficerBranch Manager — PSU / Co-op / RRB (sanctioning powers)Loan Operations / CPC / DisbursementCompliance TeamBranch Sales / CASA Acquisition OfficerRM — Loans (Assets)
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →

💬 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.

Loading comments…
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=4342&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—