RBI/2017-18/48
FIDD.CO.FSD.BC.No.14/05.02.001/2017-18
August
16, 2017
The Chairman / Managing Director
& CEOs
All Public & Private Sector Scheduled Commercial Banks
Madam/Dear Sir:
Interest Subvention Scheme for
Short Term Crop Loans during the year 2017-18
Please refer to our circular FIDD
CO.FSD.BC.No.29/05.02.001/2016-17 dated May 25, 2017 conveying
continuation of Interest Subvention Scheme on the interim basis. In this
regard, it is advised that Government of India has approved the
implementation of the Interest Subvention Scheme for the year 2017-18 for
short term crop loans up to ? 3.00 lakhs with the following stipulations:
i.
In
order to provide short-term crop loans upto ? 3 lakh to farmers at an
interest rate of 7% p.a. during the year 2017-18, it has been decided to
offer interest subvention of 2% per annum to lending institutions viz.
Public Sector Banks (PSBs), Private Sector Commercial Banks (in respect of
loans given by their rural and semi-urban branches only) on use of their
own resources. This interest subvention of 2% will be calculated on the
crop loan amount from the date of its disbursement/ drawal up to the date
of actual repayment of the crop loan by the farmer or up to the due date of
the loan fixed by the banks whichever is earlier, subject to a maximum
period of one year.
ii.
To
provide an additional interest subvention of 3% per annum to such of those
farmers repaying in time i.e. from the date of disbursement of the crop
loan upto the actual date of repayment by farmers or upto the due date
fixed by the banks for repayment of crop loan, whichever is earlier,
subject to a maximum period of one year from the date of disbursement. This
also implies that the farmers paying promptly as above would get short term
crop loans @ 4% per annum during the year 2017-18.
iii.
In
order to discourage distress sale and to encourage them to store their
produce in warehouses, the benefit of interest subvention will be available
to small and marginal farmers having Kisan Credit Card for a further period of
upto six months post the harvest of the crop at the same rate as available
to crop loan against negotiable warehouse receipts issued on the produce
stored in warehouses accredited with Warehousing Development Regulatory
Authority (WDRA).
iv.
To
provide relief to farmers affected by natural calamities, an interest
subvention of 2 percent per annum will be made available to banks for the
first year on the restructured loan amount. Such restructured loans will
attract normal rate of interest from the second year onwards.
v.
To
avoid multiple loaning and to ensure that only genuine farmers avail
concessional crop loan through the mechanism of gold loans, the lending
institutions may conduct due diligence and ensure proper documentation
including recording of land details even when the farmer avails gold loans
for such purposes.
vi.
To
ensure hassle-free benefits to farmers under Interest Subvention Scheme,
the banks are advised to make Aadhar linkage mandatory for availing
short-term crop loans in 2017-18.
2. All lending banks are
requested to send to us the eligible pending audited claims of 2015-16
latest by August 31, 2017 as already advised vide our email dated August 11,
2017. Please note that under no circumstances further extension will be
granted in this regard. The claims for 2016-17 may also be submitted within
the time limit as per procedure laid down and contained in our circular RBI/2016-17/32
FIDD.CO.FSD.BC.No.9/05.02.001/2016-17 dated August 4, 2016.
3. Banks may give adequate
publicity to the above scheme so that the farmers can avail the benefits.
4. It is also advised as under:
i.
Claims
in respect of 2% interest subvention and 3% additional interest subvention
may be submitted in Formats
I and II (enclosed herewith) respectively to the
Chief General Manager, Financial Inclusion and Development Department,
Reserve Bank of India, Central Office, Shahid Bhagat Singh Marg, Fort,
Mumbai – 400 001.
ii.
In
respect of 2% interest subvention, banks are required to submit their
claims on a half-yearly basis as at September 30, 2017 and March 31, 2018,
of which, the latter needs to be accompanied by a Statutory Auditor's
certificate certifying the claims for subvention for the entire year ended
March 31, 2018 as true and correct. Any remaining claim pertaining to the
disbursements made during the year 2017-18 and not included in the claim
for March 31, 2018, may be consolidated separately and marked as an
'Additional Claim' duly audited by Statutory Auditors certifying the
correctness.
iii.
In
respect of the 3% additional subvention, banks may submit their one-time
consolidated claims pertaining to the disbursements made during the
entire year 2017-18 latest by April 30,
2019, duly audited by Statutory
Auditors certifying the correctness.
Yours faithfully,
(Ajay Kumar Misra)
Chief General Manager
Encl: As above
Format
I
Claim
for 2 Per cent Interest Subvention on
Short-term Crop Loan up to Rs.3 lakh for the year 2017-18
Name
of the Bank: ___________________________________________
Statement
for the half year ended
September 2017 / March 2018/ Additional Claim.
|
Total
short term production credit at 7% p.a
|
Amount
of subvention claimed
(Rs. in actuals)
|
No.
of accounts.
(in thousands)
|
Amount
(Rs. lakh)
|
Loans up to Rs.50,000/-
|
|
|
|
Loans above Rs.50,000/- and up
to Rs.3 lakh.
|
|
|
|
Total
|
|
|
|
We certify having disbursed the
above loans at 7% p.a. up to Rs.3 lakh by way of short-term production
credit to the farmers during the year 2017-18.
Authorised Signatory
Date :
(This claim format needs to be
duly certified by Statutory Auditors with the Firm Registration Number and
Membership Number of all Signatories)
Format
II
One
- time Claim for Additional 3 per cent Subvention for timely
Repayment of Short-term Crop Loans up to Rs.3 lakh disbursed in 2017-18
Name
of the Bank: ___________________________________________
|
Total
short term production credit upto Rs.3 lakh
|
Total
short term production credit which were repaid in time
|
Amount
of additional subvention claimed @3%
(Rs. in actuals)
|
No.
of accounts.
(in thousands)
|
Amount
(Rs.lakh)
|
No.
of accounts.
(in thousands)
|
Amount
(Rs.lakh)
|
Loans up to Rs.50,000/-
|
|
|
|
|
|
Loans above Rs.50,000/- and up
to Rs.3 lakh.
|
|
|
|
|
|
Total
|
|
|
|
|
|
We certify that the above loans
for which the claim is being made were repaid in time and the benefit of
additional 3 percent incentive subvention has already been passed on to the
account holders, thereby bringing down the interest rate for such farmers to
4 per cent per annum for short term production credit up to Rs.3 lakh
disbursed during 2017-18 for these farmer.
Authorised Signatory
Date :
(This claim format needs to be
duly certified by Statutory Auditors with the Firm Registration Number and
Membership Number of all Signatories)
|