No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/124 · issued FY 2009-10 · ~2 min read
Quick answerRBI directs urban co-operative banks to ensure Grievance Redressal Officers issue speaking orders with reasons for decisions under the Agricultural Debt Waiver and Debt Relief Scheme, 2008, following a Kerala High Court observation.
What changed
RBI has mandated that Grievance Redressal Officers under the ADWDR Scheme must now pass speaking orders, providing clear reasons for acceptance or rejection of farmer claims. This follows a Kerala High Court observation that lack of reasoned decisions was leading to increased litigation and hardship for marginalized farmers.
What it means for you
Urban co-operative banks must ensure their grievance redressal process is transparent and legally robust. Every decision on a farmer's claim under the scheme must be documented with a clear rationale, reducing the risk of writ petitions and protecting banks from prolonged legal challenges. This adds an administrative step but strengthens compliance and farmer trust.
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
Instruct all Grievance Redressal Officers to issue speaking orders for every decision under the ADWDR Scheme, 2008.
Review current grievance disposal procedures to ensure reasons for rejection or acceptance are recorded transparently.
Train staff on drafting reasoned orders to minimize legal challenges and ensure meaningful consideration of farmer claims.
Treat this as an urgent compliance matter and update internal guidelines accordingly.
Who it affects
Primary (Urban) Co-operative Banks, Grievance Redressal Officers at UCBs, Farmers eligible under ADWDR Scheme, 2008
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 08:57 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is a speaking order in this context?
A speaking order is a written decision that clearly states the reasons for accepting or rejecting a farmer's claim under the ADWDR Scheme. It must be transparent and based on the facts of the case.
Why did RBI issue this directive?
The Kerala High Court observed that unreasoned decisions by Grievance Redressal Officers were leading to increased litigation under Article 226, burdening courts and marginalized farmers. RBI acted to ensure fair and transparent grievance handling.
Does this apply to all cooperative banks?
Yes, this circular is addressed to all Primary (Urban) Co-operative Banks that are implementing the Agricultural Debt Waiver and Debt Relief Scheme, 2008.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/124
UBD.BPD.PCB.Cir.No. 3 /13.05.006/2009-10
August 17 , 2009
The Chief Executive Officer,
All Primary (Urban) Co-operative Banks
Dear Sir,
Union Budget – 2008-09 – Agricultural Debt Waiver and Debt Relief Scheme, 2008
Please refer to para 10 of the Agricultural Debt Waiver and Debt Relief Scheme, 2008 forwarded vide our circular UBD.PCB. Cir. No. 43/13.05.000/07-08 dated May 23, 2008 on the captioned subject wherein it is indicated that every lending institution shall appoint one or more Grievance Redressal Officers to address the representations made by any farmer on the decisions taken with regard to his loan. In one of the Writ Petitions filed before Hon’ble High Court of Kerala, the Hon’ble Court has observed that “with the passage of time, the decisions of the Grievance Redressal Officers are challenged under Article 226 of the Constitution of India which essentially tends to grow the volume of litigation in writ jurisdiction and it also compels the marginalized farmers to seek redressal exclusively for writ jurisdiction”.
2. The High Court has also observed that “whenever the Grievance Redressal Officers decide against a claim of a person that he is an agriculturist entitled to the benefit of the Scheme, the Grievance Redressal Officer is bound to give reasons for the decision”. In view of the above suggestions made by the Hon’ble High Court of Kerala, it is advised that the Grievance Redressal Officers may dispose of the grievances received under ADWDR Scheme through a speaking order citing reasons for rejection / acceptance of the claim made by the petitioners in a transparent manner.
3. You may take necessary action in this regard so that there is meaningful consideration of the request of eligible farmers under ADWDR Scheme, 2008.
4. The matter may be treated as most urgent.
Yours faithfully,
(Uma Shankar)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/124 · issued FY 2009-10. The plain-English explanation above is BankPulse’s own independent summary.
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 03 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=5221&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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