Agricultural Debt Waiver and Debt Relief Scheme, 2008 - Prudential Norms on Income Recognition, Asset Classification, Provisioning and Capital Adequacy

Please refer to our circular RPCD.CO.RF.BC.No.17/07.38.03/2008-09 dated July 30, 2008 and RPCD.CO.RF.BC.No.69/07.37.02/2008-09 dated November 17, 2008 on the captioned subject.

2. In this regard, we advise that under the captioned scheme, the Government of India has since decided to extend the last date of repayment of first instalment by the “other farmers” under the Debt Relief Scheme from September 30, 2008 to March 31, 2009. The dates of payment of second and third instalments remain unchanged at March 31, 2009 and June 30, 2009. All other terms of the aforesaid circulars remain unchanged.

3. It is also clarified that the additional period of one month from the pre-specified due dates, permitted to the farmers eligible under the Debt Relief Scheme, for paying theirshare of the settlement, without affecting the standard asset classification status of the relevant account, shall be available only for the first two instalments viz. those due on March 31, 2009. However, no grace period is allowed for the last instalment and the entire share of the farmer is payable by June 30, 2009 itself, in order to maintain the eligibility of the ‘other farmers’ for Debt Relief Scheme and to retain the standard asset classification status.