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Guidelines for Relief Measures by Banks in Areas Affected by Drought
RPCD.
No. PLFS. BC. 46 - 05.04.02 (DROUGHT) - dated 15th November 2002
In
consultation with Government of India it has been decided not to effect any
recovery of the crop loans, including interest during the current financial year
in the States affected by the failure of the South-West monsoon.
2.
Accordingly, for Kharif 2002-03, the following reliefs may be extended by
commercial banks to the farmers affected by drought, in the districts notified
by the State Governments.
There
should be no recovery of any amount either by way of principal or interest
during the current financial year in respect of Kharif crop loan.
The
principal amount of crop loan should be converted into term loan and will be
recovered over a period of minimum five years in the case of small and marginal
farmers and four years in the case of other farmers. (As against three years
stipulated in the existing guidelines).
Interest
due in the current financial year on crop loan should also be deferred. No
interest should be charged on the deferred interest.
3.
In this connection we also invite a reference to our circular RPCD. NO.
PLFS.BC/ 2 / 05.04.02/ 2002-03 dated August 3, 2002 on the above subject and
advise that all other instructions contained in our guidelines, circulated under
cover of circular RPCD. NO. PS. BC. 6/ PS.126-84 dated August 2, 1984 read with
circular RPCD. NO. PLFS. BC. 128/ 05.04.02/ 97-98 dated June 20, 1998, remain
unchanged.
4.
We shall be glad if you will take immediate action in providing relief as
above, to the farmers affected by drought.
Please
acknowledge receipt.
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