UCBs - Agricultural Debt Waiver and Debt Relief Scheme, 2008 - Additional Instructions

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UCBs - Agricultural Debt Waiver and Debt Relief Scheme, 2008 - Additional Instructions

RBI/2007-08/370
UBD.PCB.Cir.No. 55/13.05.000/2007-08

June 17, 2008

The Chief Executive Officer,
All Primary (Urban) Co-operative Banks

Dear Sir/Madam,

Union Budget – 2008-09 – Agricultural Debt Waiver and
Debt Relief Scheme, 2008- UCBs

Please refer to our circular UBD.PCB.Cir.No.43/13.05.000/07-08 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 installments and the first two installments shall be for an amount not less than one-third of his share. The last dates of payment in the case of three installments 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.

3. Please acknowledge receipt to the Regional Office concerned.

Yours faithfully,

(A.K Khound)
Chief General Manager-in-Charge