Notifications

1. Short Title, commencement & application

1. The Scheme shall be called "Interest Waiver Scheme on Kharif Crop Loans, Drought, 2002".
2. It shall come into force with effect from December 18, 2002.
3. It shall apply to Kharif 2002, crop loans of all scheduled commercial banks.

2. Definitions

1. 'Crop loans' means short-term production/ crop loans availed by farmers for raising crops during Kharif season of the calendar year 2002.
2. 'Drought affected States" means the States where the 'Annewari' declared by the competent authorities for the Kharif crop yield was fifty percent or less of the normal yield.
3. 'Borrower' means an individual farmer who had taken loans from one or more banks for the activity of raising Kharif 2002 crop.
4. 'Bank' means all scheduled commercial banks, in public sector and private sector( excluding Regional Rural Banks)
5. 'Effective date' means December 18, 2002.

3. Relief and its extent

All scheduled commercial banks shall provide relief by way of partial interest waiver to eligible borrowers of Kharif loan. Scheduled commercial banks are advised to defer the interest due in the current financial year on Kharif crop loans in such a way that the first instalment of interest repayment would be 20% of the deferred interest. This instalment of deferred interest shall be completely waived as a one time measure. The deferred interest which is to be waived by banks as per Government announcement, will be reimbursed by Government of India.

4. Identification of borrower and determination of eligible loans

The concerned bank ( lending bank branch) will have the authority to determine eligible loans and sanction waiver of first instalment of deferred interest. Settlement of any dispute in this regard will be left to the discretion of the bank.

Concerned lending bank-branch will endorse such waiver of interest in the appropriate loan / pass books of the borrower. Pass books issued under the Kisan Credit Card scheme will also be suitably endorsed.

5. Adjustment of interest accounts

Credits may be given in the eligible loan accounts for the first year of deferment to the extent of 20% of the deferred interest, that being the first instalment of the deferred interest to be recovered in the first year. The aggregate amount will be held in the account called "Receivable from Government under Interest Waiver Scheme on Kharif Crop Loans, Drought, 2002" till the amount is received from the Government/ Reserve Bank of India.

6. Submission of claim statement

Head Office of each scheduled commercial bank shall prepare and submit a consolidated claim as per the proforma enclosed, duly certified by the Statutory Auditors, in respect of the amount of relief, to the Government/Reserve Bank of India for reimbursement.

7. Payment of claim amount

Government/ Reserve Bank of India shall, as soon as possible, complete the payment of the full amount to the bank in respect of interest waived on the eligible loans after such scrutiny as it may wish to make.

8. Receipt of claims

All payments by the Government/ Reserve Bank of India towards claim statements received by it shall be made to the respective Head Offices of the scheduled commercial banks.

9. Administrative Guidelines

Government of India / Reserve Bank of India, in consultation with Government of India will issue suitable administrative guidelines, if necessary, for smooth and expeditious implementation of the Scheme.