RBI/2007-08/ 378
RPCD.No.PLFS.BC.80/05.04.02/2007-08

June 24, 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. 78 /05.04.02/2007-08   dated June 19, 2008, on the captioned subject.

2. The clarification provided against query no. 33 in the above circular has been modified by Government of India as under:

“If the loan is for poultry farming or sheep rearing or piggery or a cattle farm and part of the loan amount is used for sheds, pens, fences etc, the entire composite loan amount would be reckoned for calculating ‘eligible amount’ as defined in the Scheme. If it is a standalone loan for putting up fencing or sheds etc, these would not be covered.”

3. This modified clarification may be made available to all the branches for smooth implementation of the Scheme.

4.  In case of RRBs and co-operatives, instructions will be issued by NABARD. Yours faithfully,

(G.Srinivasan)
Chief General Manager – in – Charge