RBI/2007-2008/366
RPCD.No.PLFS.BC.
76 /05.04.02/2007-08
June 13, 2008
The
Chairman/Managing Director
All Scheduled Commercial Banks (including Local
Area Banks)
Dear Sir,
Union
Budget – 2008-09 – Agricultural Debt Waiver and Debt Relief Scheme, 2008
Please
refer to our circular RPCD.No.PLFS.BC.
72 /05.04.02/2007-08 dated May 23, 2008, and the Agricultural Debt Waiver
and Debt Relief Scheme, 2008, forwarded therewith.
2. In
this connection, we forward certain additional instructions for smooth implementation
of the Scheme.
A. Format for Undertaking to be given
by ‘other farmers’ for OTS:
As per item no. 7 of the
Scheme, a farmer classified as ‘other farmer’ eligible for OTS relief shall give
an undertaking agreeing to pay his share (that is eligible amount minus the amount
of OTS relief) in not more than three instalments and the first two instalments
shall be for an amount not less than one-third of his share. The last dates of
payment in the case of three instalments will be September 30, 2008; March 31,
2009 and June 30, 2009. The format for such an undertaking is given in ANNEX
– I.
B. Format for the Certificate of Debt Waiver
and Debt Relief:
As per item no. 9 of the captioned
Scheme, in the case of small and marginal farmers, upon waiver of the eligible
amount, the lending institution shall issue a certificate to the effect that the
loan has been waived and specifically mention the eligible amount that has been
waived.
In
the case of ‘other farmers’, upon granting OTS relief, the lending institution
shall issue a certificate to the effect that the loan account has been settled
to the satisfaction of the lending institution and specifically mention the eligible
amount, the amount paid by the farmer as his share and the amount of OTS relief.
Upon issuing the certificate the lending institution shall take an acknowledgement
from the farmer.
The formats for such Certificates are
given in ANNEX
– II and ANNEX
III respectively.
4. In case of RRBs and co-operatives,
instructions are being issued by NABARD.
Yours faithfully,
(G.Srinivasan)
Chief
General Manager – in – Charge