RBI/2006-2007/219
UBD.PCB.Cir.No.24 /13.05.000/2006-07
December 26, 2006
The Chief Executive Officers of
(i) Primary (Urban) Co-operative Banks
in Andhra Pradesh/ Karnataka/Kerala
(ii) All Multi State Primary (Urban) Co-operative
Banks.
Dear Sir/Madam,
Package of Relief Measures for the Debt Stressed
Farmers of
25 Districts in the States of Andhra Pradesh, Karnataka & Kerala-UCBs
For mitigating the distress of
farmers in the following 25 debt stressed districts of Andhra Pradesh, Karnataka
and Kerala, the Union Government has approved a package which, besides other
items, has a component relating to agriculture credit.
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Name of the State
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Name of the Affected Districts
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01
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Andhra Pradesh (16)
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Prakasam, Guntur, Nellore, Chittor, Cuddapah,
Anantapur, Kurnool, Adilabad, Karimnagar, Khammam, Mahabubnagar, Medak,
Nalgonda, Nizamabad, Rangareddy and Warangal
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02
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Karnataka (6)
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Belgaum, Hassan, Chitradurga, Chikmagalur,
Kodagu and Shimoga
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03
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Kerala (3)
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Wayanad, Palakkad and Kasaragod
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2.
The component relating to Agriculture Credit includes the following:
(i) The entire
interest on overdue loans as on July 01, 2006 will be waived in the above
25 affected districts and all farmers will have no past interest burden as
on that date, so that they will immediately be eligible for fresh loans from
the banking system.
(ii) The overdue
loans of the farmers as on July 01, 2006 will be rescheduled over a period
of 3-5 years with a one-year moratorium.
(iii) A credit
flow of Rs.13,817.78 crore, Rs.3,076.20 crore and Rs.1,945.07 crore will be
ensured in the above debt stressed districts of Andhra Pradesh, Karnakata
and Kerala respectively in 2006-07.
3.
The burden of waiver of overdue interest will be shared equally by the State
and Central Governments. While apportioning the overdue interest as above, due
care will be taken to offset releases if any, already made by the State Government
on this count.
4. You are, therefore, advised
to ensure that all the farmers' loan-accounts in the specified districts, which
are overdue as on July 01, 2006, are rescheduled on the lines of the package
and the interest thereon (as on July 01, 2006) is fully waived. Fresh finance
may be ensured to such farmers. The total amount of credit envisaged to be released
by banks in the three States will be allocated by the respective SLBC Convenors
among the banks functioning in the districts.
5. The amount of interest waived
(State wise) may be advised to the SLBC Convenor Bank of the respective State
and to our respective Regional Offices in a consolidated manner in the enclosed
format (Annex - I) in order to enable us to reimburse the same.
While the branches may provide information to the Controlling / Head Office
as per Annex - III, the latter may maintain branch-wise information
in the format given in Annex -II for the purpose of RBI Inspection
and State Government Audit.
Yours faithfully,
(N.S.Vishwanathan)
Chief General Manager-in-Charge
Annex - I
Certificate for Claiming Reimbursement
towards
Interest on Overdue Agricultural Credit Outstanding as on July 01, 2006
Name of the Bank :
Relief provided in the State of :
(Claims to be submitted State-wise)
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(Amount in Rupees)
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Number of accounts of overdue
loans
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Principal amount outstanding
as on July 01, 2006, since rescheduled,
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Amount of interest overdue
as on July 01, 2006 on the loans shown in column 2
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Of which reimbursement already
received from State Govt. under any other relief package
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Reimbursement of net interest
now claimed
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(1)
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(2)
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(3)
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(4)
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(5)
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We hereby certify that the amount
of interest being claimed as shown above, have been correctly calculated in
conformity with the Reserve Bank of India Circular letter UBD.PCB. Cir.No.24/13.05.000/06-07
dated December 26, 2006. We undertake that in the event of any inaccuracy detected
later during audit or otherwise, we shall immediately refund to the Reserve
Bank any excess amount received by us.
(Authorised Signatory)
Place :
Date :
Annex - II
Data to be kept with the Bank's
Head Office for Verification / Scrutiny by Auditors / RBI Inspectors
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(Amount in Rupees)
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Sr. No.
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Branch Name and Code
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Amount outstanding as on
July 01, 2006 in respect of overdue loans
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Amount of interest overdue
as on July 01, 2006 on the loans shown in column 4
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Of which reimbursement already
received from State Govt. under any other relief packge
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Reimbursement of net interest
now claimed
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No. of A/c's
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Amount
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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Annex - III
Format for Branches to provide Information
in respect of Interest waived on
Overdue Agricultural Loans outstanding as on July 01, 2006 to their Controlling
/ Head Office
Name of the Branch :
Branch Code :
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(Amount in Rupees)
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Sr. No.
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Name of the Borrower
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Account No.
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Agricultural loans Overdue
& Outstanding as on July 01, 2006
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Amount of Interest overdue
as on July 01, 2006 on the loans shown in column 4
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Of which reimbursement already
received from State Govt. under any other relief package
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reimbursement of net interest
now claimed
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(1)
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(2)
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(3)
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(4)
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(5)
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(6)
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(7)
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