The Presidents / Chief Executive Officers
All Banks
Dear
Sir / Madam,
Amendments
in Revolving Credit Scheme (RCS) for Agriculture
Please
refer to ACD Circular No. 6 dated 9th October, 2003
on the subject.
2.
In order to facilitate farming
community in repayment of crop production loans under
Revolving Credit Scheme based on their cropping cycle,
it has been decided that banks may segregate the repayments
in two stages i.e. at least 50% of the utilized credit
during the year after harvest of each Rabi and Kharif
crop instead of existing condition of one time annual
clean up for renewal of the facility. Total repayments
in the loan account during the year equals to the
maximum amount availed/ outstanding during the year
shall also be treated as clean up of the account.
The payment of mark up and other charges, however,
shall be required to be made as per agreed terms &
conditions.
3.
Further, the date of repayment/adjustment
of individual borrower shall be determined by the
bank on the basis of crop cycle, harvesting period,
etc. in respective areas.
4.
Other instructions on the
subject shall remain unchanged.
5. Please acknowledge receipt.