What changed
RBI has informed urban co-operative banks that the Comptroller and Auditor General of India (CAG) has selected the Agricultural Debt Waiver and Debt Relief Scheme, 2008 for a comprehensive performance audit. Banks must now facilitate scrutiny of records related to the scheme.
What it means for you
Urban co-operative banks must cooperate with CAG auditors, providing access to records and information on the scheme's implementation. This audit aims to verify that debt waivers and relief were correctly granted to eligible beneficiaries, ensuring compliance with government and parliamentary intent.
What you must do
- Prepare and organize all records and information related to the Agricultural Debt Waiver and Debt Relief Scheme, 2008 for audit scrutiny.
- Facilitate access for CAG auditors to examine the implementation of the scheme at your bank.
- Ensure that any past circulars on this scheme, especially the one dated June 2, 2008, are readily available for reference.
- Designate a point of contact to coordinate with the CAG audit team.
Who it affects
All Primary (Urban) Co-operative Banks, Chief Executive Officers of these banks, Staff handling agricultural loan accounts and scheme implementation
What is the purpose of the CAG audit for this scheme?
The CAG is conducting a performance audit to examine the efficiency of the scheme's implementation and to ensure that eligible beneficiaries actually received the debt waiver and relief as intended by the government and Parliament.
Which banks are required to comply with this circular?
All Primary (Urban) Co-operative Banks, as addressed to their Chief Executive Officers, must facilitate the audit.
What records might the CAG need to scrutinize?
The CAG may require records and information related to the Agricultural Debt Waiver and Debt Relief Scheme, 2008, including loan accounts, waiver approvals, and beneficiary details.