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CAG Audit on ADWDRS 2008: Corrective Actions Required

Current · Source: Reserve Bank of India · RBI/2012-13/377 · issued 14 Jan 2013 · ~1 min read

Quick answerRBI mandates banks to recover ineligible benefits, fix staff responsibility, and issue pending certificates under ADWDRS 2008 within one month, following CAG audit findings.

The rule, in the simplest words

Banks must take back money from farmers who were not supposed to get the loan waiver (ineligible beneficiaries) and from loans given to microfinance groups (MFIs) that were wrongly claimed.
Bank staff and auditors who changed records (tampering), wrote over documents (over-writing), or did not keep proper papers (inadequate documentation) must be held responsible.
Banks must give out all pending Debt Waiver and Debt Relief Certificates (official papers saying the loan is forgiven) to the right farmers by February 28, 2013.
Banks must watch over new loans given to farmers who got the waiver and tell the RBI and government what happened.
All these actions must be finished within one month from the date of the circular (January 14, 2013).

How it plays out — a real example

An agri & priority-sector lending officer in Indore reviews old loan files from 2008 and finds that a farmer who did not qualify for the debt waiver got the benefit because a clerk changed the loan amount. The officer reports this to the branch manager, who then recovers the money from the farmer and writes a warning to the clerk for tampering with records.

What changed

RBI issued a circular on January 14, 2013, directing banks to take corrective actions based on CAG's performance audit of the Agricultural Debt Waiver and Debt Relief Scheme, 2008. Key issues include ineligible accounts receiving benefits, tampering of records, and non-issuance of certificates.

What it means for you

Banks must recover funds from ineligible beneficiaries and fix responsibility on officials and auditors for lapses. They also need to issue pending Debt Waiver and Debt Relief Certificates by February 28, 2013, and monitor fresh loans to beneficiaries. This tightens compliance and accountability under the scheme.

What you must do

Recover amounts from ineligible farmers and MFI loans wrongly claimed under the scheme.
Fix responsibility on bank officials and auditors for tampering, over-writing, or inadequate documentation.
Issue pending Debt Waiver and Debt Relief Certificates to eligible beneficiaries by February 28, 2013.
Monitor fresh loans extended to scheme beneficiaries and report outcomes.
Complete all actions within one month from circular date and report to RBI and Ministry of Finance.

Who it affects

All scheduled commercial banks, Local Area Banks, Bank officials handling agricultural loans, Auditors of banks

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 16:35 IST
clarified_by — RBI Orders Full Recovery & Accountability for Agri Debt Waiver Lapses

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

What is the deadline for issuing Debt Waiver and Debt Relief Certificates?

The deadline is February 28, 2013, as per the circular.

What action is required for ineligible accounts that received benefits?

Banks must recover the money from ineligible beneficiaries, fix responsibility on officials and auditors, and consider lodging FIRs in cases of tampered records.

How should banks handle cases where MFI loans were wrongly claimed?

Banks must fix responsibility on officials responsible for such disbursal and recover the money.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Clarified by RBI Orders Full Recovery & Accountability for Agri Debt Waiver Lapses

RBI’s words: “Please refer to our Circular RPCD.CO.FSD. No. BC.58/05.04.02/2012-13 dated January 14, 2013”

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 200 kb ) Performance Audit of Agricultural Debt Waiver and Debt Relief Scheme, 2008 RBI/2012-13/377 RPCD.CO.FSD. No. BC. 58/05.04.02/2012-13 January 14, 2013 The Chairman/ Managing Director/ Chief Executive Officer All scheduled commercial banks & Local Area Banks Madam/Dear Sir, PERFORMANCE AUDIT OF AGRICULTURAL DEBT WAIVER AND DEBT RELIEF SCHEME, 2008 As you are aware, the Performance Audit of the Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008 is being undertaken by the Office of the Comptroller and Auditor General (CAG). During the Exit Conference held with Officers of CAG on December 7, 2012, the following major observations were made with regard to implementation of the Scheme : Ineligible accounts of farmers extended benefits under the Scheme. The audit has noted that to provide benefit to ineligible farmers, instances of tampering and over-writing, inadequate documentation, etc. had taken place. Benefit was only extendable to farmers directly but in some cases loans extended to MFIs were claimed and disbursed. Less/Excess benefit extended to eligible accounts. Reimbursement of inadmissible charges to banks. Non-issuance of Debt Waiver and Debt Relief Certificates. Outcome relating to fresh loans not monitored. 2. In view of the above, the Government of India has desired that immediate corrective measures be taken by all the concerned Institutions. Details of specific cases scrutinized by CAG and their observations thereon are already available with Banks. You are, therefore, requested to take following action in such areas : (i) Ineligible accounts of farmers extended benefits under the Scheme. The audit has noted that to provide benefit to ineligible farmers, instances of tampering and over-writing, inadequate documentation, etc. had taken place. (i) Recovery of such money from such ineligible beneficiaries. (ii) Fixing of responsibility of bank officials as well as auditors. (iii) Considering lodging of FIRs in cases of tampering of records. (ii) Benefit was only extendable to farmers directly but in some cases loans extended to MFIs were claimed and disbursed. (i) Fixing of responsibility of the officials responsible for such disbursal. (ii) Recovery of such money. (iii) Less/Excess benefit extended to eligible accounts (i) Recovery in cases of excess payment. (ii) Fixing responsibility of banks’ officials as well as auditor responsible for such act. (iv) Reimbursement of inadmissible charges to banks. (i) Recovery of such money (ii) Fixing of the responsibility of claimant institutions and disbursing officials. (v) Non-issuance of Debt Waiver and Debt Relief Certificates. (i) In cases where such certificates have not been issued, these should be immediately issued. This should be completed by February 28, 2013. (vi) Outcome relating to fresh loans not monitored. (i) Such monitoring should be immediately undertaken in respect of beneficiaries granted relief under the Scheme. 3. Please ensure that the action, as indicated above, be completed in one month from the date of issue of this Circular and be intimated to us, under advice to the Ministry of Finance, Department of Financial Services, Government of India. Yours faithfully (C.D. Srinivasan) Chief General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/377 · issued 14 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.

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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks, Local Area Banks, Bank officials handling agricultural loans, Auditors of banks), your first concrete step on “CAG Audit on ADWDRS 2008: Corrective Actions Required” is: “Recover amounts from ineligible farmers and MFI loans wrongly claimed under the scheme.” (RBI issued this 14 Jan 2013).

Circular: RBI/2012-13/377 -- CAG Audit on ADWDRS 2008: Corrective Actions Required
Issued: 14 Jan 2013
Action required: Recover amounts from ineligible farmers and MFI loans wrongly claimed under the scheme.
Action required: Fix responsibility on bank officials and auditors for tampering, over-writing, or inadequate documentation.
Action required: Issue pending Debt Waiver and Debt Relief Certificates to eligible beneficiaries by February 28, 2013.
Action required: Monitor fresh loans extended to scheme beneficiaries and report outcomes.
Action required: Complete all actions within one month from circular date and report to RBI and Ministry of Finance.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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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=7803&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.