RBI/2004-05/39
RPCD.CO.RF.BC.4/07.02.03/2003-04
July 13, 2004
The Chairman/Managing Director All State Co-operative
Banks
Dear Sir,
Capital Investment Subsidy Scheme for construction/ renovation/expansion
of rural godowns
Please refer to the circular No. 92/ICD-20/2002-03
dated April 12, 2002 issued to you by NABARD on the above subject.
2. In this connection, we advise that the subsidy
admissible to promoters under this scheme will be retained in "Subsidy
Reserve Fund Account" (borrower- wise) in the books of financing banks
till the loan component (net of subsidy) is fully repaid.
3. The balance lying to the credit of the above
Subsidy Reserve Fund Account will not form part of Demand and Time Liability
(DTL) for the purpose of Statutory Liquidity Ratio (SLR)/ Cash Reserve Ratio
(CRR) under Section 18 and 24 of the Banking Regulation Act, 1949 (AACS)/ Section
42 of the Reserve Bank of India Act, 1934.
4. The contents of this circular may be placed
before the Board of Directors of your bank.
5. Please acknowledge receipt of this circular
to our concerned Regional Office.