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.