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RBI/2006-07/156
RPCD.PLFS.NO.BC. 31 / 05.04.02 /2006-07
October 18, 2006
The Chairman and Managing Director/Chief
Executive Officers
All Scheduled Commercial Banks.
Dear Sir,
Package of relief measures
for the debt stressed farmers of 25 districts in the states of Andhra Pradesh,
Karnataka & Kerala
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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Names of affected districts
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01
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Andhra Pradesh (16)
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Prakasam, Guntur, Nellore,
Chittoor, 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 us 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 Audit.
6. The progress in the implementation
of the package will be monitored at the district level through the DLCC forum
and at the State level through the SLBC. Besides, a special team from NABARD
and lead bank shall be deputed to ensure timely restructuring/ reschedulement
of the loan accounts to enable early flow of fresh credit.
Yours faithfully,
(C. S. Murthy)
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)
(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 reimburs-ement
already received from
State Govt. under any
other relief package
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Reimbur-sement
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 RPCD. No. PLFS.BC.
31 /05.04.02/2006-07 dated October 18, 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
(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 reimbursem-ent
already received from
State Govt. under any
other relief package
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Reimbursement
of net interest
now claimed
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No. Of A/cs
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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
(Amount in Rupees)
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Sr.No.
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Name of the
borro-wer
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Account No.
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Agricultu-ral loans
overdue &
outstand-ing 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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Reimbur-sement
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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