As you are aware, the Governor has constituted a One Man High-Level Committee to study the Working of the Credit Delivery System for Agriculture. The Committee is expected to furnish its report by March 31, 1998. The Committee is required to :

(i) study the working of the Credit Delivery System for Agriculture through field level interaction with farmers, agriculturists, borrowers of commercial banks and bank staff and analyse the constraints in the flow of such credit to the farm sector ;

(ii) make suggestions for simplification and improvements in systems and procedures including reduction in paper work for delivery of farm credit ; and

(iii) make proposals on any other initiatives that may be taken by commercial banks to facilitate credit delivery to the farm sector.

2. In this context , the Chairman , High - Level Committee on Agricultural Credit has requested that your bank may furnish :

i. a note on the systems and procedures presently obtaining in your bank for processing and sanction of loan applications for agricultural credit ;

ii. a note on the factors (policy/systems/procedures) as perceived by your bank which are impeding the flow of credit to the farm sector ; and

iii. suggestions for improving/streamlining the systems and procedures for processing and sanction of loan application for agricultural credit.