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,

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.

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.

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