The Presidents/Chief Executives

All Banks/MFBs

Dear Sir/Madam,

Changes in Section 4.8 of Guidelines for Value Chain Contract Farmer Financing

Please refer to the Guidelines for Value Chain Contract Farmer Financing issued vide AC&MFD Circular No. 05, dated September 30, 2014

2. In order to encourage banks to lend to individual farmers, corporate guarantee has been added to the eligible securities/collateral under section 4.8 of the subject guidelines. To bring more clarity in the related instructions, few amendments have also been made in section 4.8 of the subject guidelines.
3. All other instructions on the subject remain unchanged.
4. Please acknowledge receipt.

Encl: Revised Guidelines for Value Chain Contract Farmer Financing