ADWDRS 2008: OTS Deadline Extended to June 30, 2010

RBI/2009-2010/419 UBD.PCB.Cir. No. 58/13.05.000/2009-10 April 21, 2010 The Chief Executive Officer of all Primary (Urban) Co operative Banks Dear Sir / Madam, Agricultural Debt Waiver and Debt Relief Scheme, 2008 Please refer to our circular UBD.PCB. Cir. No. 54/ 13.05.000/2009-10 dated April 5, 2010. In this connection, we forward herewith a copy of letter bearing F. No.3/ 9/ 2008-AC dated March 26, 2010, received from Government of India, Ministry of Finance, New Delhi, on the captioned subject. The contents are self explanatory. 2. You are requested to take necessary action in this regard and give wide publicity to the change in the Scheme as envisaged in the above letter so that farmers can avail maximum benefits of ADWDR Scheme, 2008. 3. In this connection, your attention is invited to paragraph 2 (f) of our circular UBD.PCB. Cir. No. 11/13.05.000/2008-09 dated September 5, 2008 . The “Final“ Claims pertaining to “Debt Relief “  arising till December 31, 2009 (including the cases settled through Grievances Redressal Mechanism operating till January 31, 2010) may be submitted to Regional Office  concerned by June 30, 2010 in the prescribed format duly certified by the Statutory Auditors, as stated in the said circular. 4. In view of paragraph 5 of the above cited letter from Government of India, as no interest shall be paid by Government of India to the lending institutions for the six months extension period of the Scheme while reimbursing  25% amount to the lending institutions,  banks may forward a separate claim to Regional Office concerned in respect of “ Debt Relief “ cases that may be settled during the period January 1, 2010 to June 30, 2010 (including the cases settled through Grievances Redressal Mechanism operating from February 1, 2010 to July 31, 2010) duly certified by the Statutory Auditors, in the manner stated in our circular dated September 5, 2008 mentioned above. The latter may be clearly marked as “ Additional Final Claims - Debt Relief – Not Eligible for Interest “ and should reach Regional Office concerned latest by June 30, 2011. 5. All other conditions of above circular remain unchanged. Yours faithfully (A. K. Khound) Chief General Manager Encl : As above Government of India Ministry of Finance Department of Financial Services (AC Section) Jeevan Deep Building, Parliament Street New Delhi F.No.3/9/2008-AC March 26, 2010 To, The Dy. Governor, RBI, Mumbai, The Chairman, NABARD, Mumbai, The Chairman / CMD / CEO of All Public Sector Banks, The Chief Executive of IBA, The Convenor of All SLBCs Budget Announcement 2010-11 - Extension of last date under One Time Settlement Scheme under Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008 upto 30.06.2010 Sir, I am directed to say that the Hon'ble Finance Minister has made an announcement in the Budget Speech 2010-11 which is as under : Under the Agricultural Debt Waiver & Debt Relief scheme (2008) , farmers having more than two hectares of land were given time upto 31st December, 2009 to pay 75% of their overdues. In view of the recent drought in some States and the severe floods in some other parts of the country, I propose to extend this period by six month upto 30th June, 2010". 2.        In the light of the above said announcement, Government has now decided to extend the period of payment of 75% of overdue portion by the 'other farmer' under the 'One Time Settlement' Scheme under ADWDRS, 2008 for another six months i.e., from 01.01.2010 to 30.06.2010. 3.       The banks / lending institutions are allowed to receive even less than 75% of the eligible amount under OTS provided the banks / lending institutions bear the difference themselves and do not claim the same either from the Government or from the farmer. The government will pay only 25% of the actual eligible amount under debt relief as has already been intimated vide this Department's letter of even number dated 12.06.2009. 4.        The eligible 'other farmers' may be allowed to deposit this amount in one or more instalments prior to 30th June, 2010. 5.        No interest shall be paid by the Government of India to the lending institutions for this six month extension under the Scheme while reimbursing the 25% amount to the lending institutions as per the delayed reimbursement scheme 6.        It is clarified that the lending institutions would not charge any interest on the eligible amount for the period from February 29, 2008 to June 30, 2009. However, the banks may charge normal rate of interest on the eligible amount from July 01, 2009 upto the date of settlement. 7.        In view of this six month extension for the debt relief portion of the ADWDRS, 2008, the last date of receipt of grievances by Grievance Redressal Officers of the lending institutions may also be accordingly extended upto 31.7.2010. 8.        The concerned are requested to give wide publicity to these decisions /clarifications so that farmers can avail maximum benefits of ADWDR Scheme, 2008. Yours faithfully, (M. S. Azad) Under Secretary to the Govt. of India

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-2010/419 · issued 21 Apr 2010. The plain-English explanation above is BankPulse’s own independent summary.

🖨 Print / Save as PDF 🔗 Copy link☆ Save for later