Scribd Logo
Upload

Welcome to Scribd!

  • 3 views

    ST ASAO Floating

    Uploaded by

    DAKSHIN BIHAR GRAMEEN BANK
    The circular outlines the operational guidelines for NABARD's provision of Additional Short-Term refinance to Regional Rural Banks for financing Seasonal Agricultural Operations for the fiscal year 2024-25. It details eligibility criteria, the sanctioning process, interest rates, and repayment terms, emphasizing the importance of timely audits and maintaining adequate Non-Overdue Credit (NODC). The guidelines also specify the consequences of default and the right of NABARD to inspect RRBs' accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    ST ASAO Floating

    Uploaded by

    DAKSHIN BIHAR GRAMEEN BANK
    3 views7 pages
    The circular outlines the operational guidelines for NABARD's provision of Additional Short-Term refinance to Regional Rural Banks for financing Seasonal Agricultural Operations for the fiscal year 2024-25. It details eligibility criteria, the sanctioning process, interest rates, and repayment terms, emphasizing the importance of timely audits and maintaining adequate Non-Overdue Credit (NODC). The guidelines also specify the consequences of default and the right of NABARD to inspect RRBs' accounts.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The circular outlines the operational guidelines for NABARD's provision of Additional Short-Term refinance to Regional Rural Banks for financing Seasonal Agricultural Operations for the fiscal year 2024-25. It details eligibility criteria, the sanctioning process, interest rates, and repayment terms, emphasizing the importance of timely audits and maintaining adequate Non-Overdue Credit (NODC). The guidelines also specify the consequences of default and the right of NABARD to inspect RRBs' accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views7 pages

    ST ASAO Floating

    Uploaded by

    DAKSHIN BIHAR GRAMEEN BANK
    The circular outlines the operational guidelines for NABARD's provision of Additional Short-Term refinance to Regional Rural Banks for financing Seasonal Agricultural Operations for the fiscal year 2024-25. It details eligibility criteria, the sanctioning process, interest rates, and repayment terms, emphasizing the importance of timely audits and maintaining adequate Non-Overdue Credit (NODC). The guidelines also specify the consequences of default and the right of NABARD to inspect RRBs' accounts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 7

    Internal

    Ref.No.NB.DOR/STPolicy/PPS-9/85967-85997/2024-25

    Circular No. 276/DOR-92/2o24 22 November 2o24

    Chairman
    All Regional Rural Banks

    Dear Sir

    Provision of Additional Short-Term (ST) refinance by NABARD


    to Regional Rural Banks for financing Seasonal Agricultural
    Operations (SAO) @ Floating Rate - Operational Guidelines for
    F. Y. 2024-25

    The operational guidelines for FY 2o24-25 are broadly based on eligibility


    criteria as given in Annexure I.

    2. The total limit sanctioned under Additional Short-Term refinance would


    be as per para `4' of Annexure-I. The guidelines come into effect from the
    date of the circular.

    3. The RRBs can draw up to eligible limit of GLC (including the amount
    drawn under STRRB fund).

    4. You may submit an application for sanction of Additional ST (SAO)


    credit limit, in the prescribed proforma to the NABARD Regional Office in
    your State.

    5. These guidelines are also available on NABARD website www.nabard.ore


    under the tab information Centre.

    6. Please acknowledge receipt of this circular to our Regional office

    Your falthfuiiy

    zEzzzlREtEJ
    eszgivi#Aijic:u:L:T;.::
    DEVELOPMENT
    oa`e 22-Nov-2o24 (o5 oo PM)

    (Dr. K S Mahesh)
    Chief General Manager
    Encl : As above

    TnaqatdrrfufatmaaT
    National Bank for Agriculture and Rural Development

    tdr]th-24,fflaaiS,qigi-Foffffro.qTgiqS).E*-4ooo5RE¥2226524926.ha+9"22653oogo.€-hador@nabardong
    DepartmentofRefinance
    Plot No. C-24, `G' Block, Bandra-Kui`la Complex, Ban(Ira (E), Mumbai -4oo o51. .Tel.: +91 22 2652 4926 .Fax : +91 22 2653 oogo . E-mail : dor@nahai.d.org
    I-7==
    chnexure I
    Provision of Additional Short-term (ST) refinance by NABARD
    to Regional Rural Banks (RRBs) for financing Seasonal
    Agricultural Operations - Operational Guidelines for F. Y.
    2024-25
    1. Operative period of Additional sT (SAO) limit
    The operative period of Additional ST(SAO) limit for F. Y. 2o24-
    25 Will be ol.04.2024 to 31.o3.2o25. Additional ST (SAO)
    refinance will be provided to the RRBs only in respect of crop loans
    disbursed during the operative period. Each drawal against the
    operative limit will be repayable in 12 months.

    2. Sanction of limit
    a. The Additional ST(SAO) limit will be sanctioned to RRBs under
    See. 21(1) (i) read with Sec. 21(4) of the NABARD Act, 1981
    against DPN executed by RRBs.
    b. RRB has to submit a declaration, at the time of each drawal that
    the drawal preferred and the refinance already availed are against
    the loans provided by RRBs and are covered by adequate non-
    overdue loans.

    3. Eligibility norms
    3.1 Audit

    a. The Audit of RRBs for the year 2o22-23 should have been completed
    and the relative audit reports along with financial statements should
    have been submitted to the concerned Regional Office of NABARD
    for considering the loan application in the first quarter of the year.
    Further, the audit of RRBs for 2o23-24 should be completed and the
    report submitted by 3o.o6.2o24.

    b. Eligibility criteria during the first quarter i.e. up to 3o.o6.2o24 will


    be based on audited financial position of the banks as on 31.o3.2o23
    or 31.o3.2o24 (if audited position as on 31.o3.2o24 is available).
    FI.om ol.o7.2o24, onwards eligibility criteria will be based on their
    audited financial position as on 31.o3.2o24.
    I-7==

    c. Sanction/Drawals of refinance on or after ol.o7.2o24 will be


    permitted only to such RRBs, which have completed the audit and
    submitted the relevant audit report to the concerned RO of NABARD
    subject to satisfactory position regarding the eligibility norms.

    3.2 Internal RIsk Rating ofRRBs by NABARD


    3.2.1 Internal Risk rating of RRBs will be based on internal guidelines of
    NABARD. RRB having internal risk rating of NBDi to NBD7 will be
    eligible for refinance under Additional ST(SAO).
    3.2.2 Risk rating will be assessed based on the financial
    parameters as indicated in the statutory audit report. However, in
    the event ofanyvariation between the audit report and the Inspection
    Report ofNABARD, the latter will be reckoned for risk rating.

    4. Quantum of refinance
    The eligible limit for sanction as a percentage of Realistic Lending
    Programme (RLP) including the availment / utilization under
    ST(SAO) will be as under:

    4.1 ForRRBs in General Region


    Risk Rating of RRBs by NABARD Eligible Limit
    NBD1 -NBD4 50%
    NBD5 -NBD7 45%

    4.2 RRBs in North Eastern Region, Jammu & Kashmir, Sikkim,


    Andaman & Nicobar Islands, Himachal Pradesh and Uttarakhand,
    will be eligible for an additional credit limit of25% as under:

    Risk Rating of RRBs by NABARD Eligible Limit


    NBD1 - NBD 4 75%
    NBD5 -NBD 7 70%
    I-7==

    4.3 RRBs in Eastern Region viz. Bihar, West Bengal, Jharkhand, Odisha,
    Chhattisgarh States and 28 districts of Eastern Uttar Pradesh (under
    BGREI Scheme of Govt. of India) will be eligible for an additional
    creditlimit of5%, as under:

    Risk Rating of RRBs by NABARD Eligible Limit


    NBD1 -NED 4 55%
    NBD5 -NBD 7 50%

    4.4 The RLp for the year 2o24-25 to be arrived based on average growth
    rate in crop loans disbursed during previous three years (taking into
    account the crop loans disbursed data for last four years). However,
    keeping in view of the ground level realities and other facts, if any,
    NABARD may accept a lower or higher RLP than worked out by the
    bank, with adequate justification.
    4.5 The RRB may be allowed drawals upto eligible limit of GLC
    (including the amount drawn under STRRB fund).
    4.6 Thelimitwillbe available only for KCc croploans issued upto {3 lakh
    at farmer level.

    4.7 The refinance under this line of credit to be reckoned as owned funds
    of the bank. The Interest Subvention will be guided by extant
    guidelines of Gol for 2o24-25.
    4.8 Special efforts may be made by the banks so as to increase the credit
    flows to credit starved and aspirational districts to gradually enhance
    credit availability in these districts.

    5. Merger of RRBs
    In case of merged Banks, the financial position of the new / merged
    RRBs as on the date of notification / merger based on special audit
    or the aggregate audit position as on 31.o3.2o23 of the erstwhile
    RRBs will form the basis for sanction of limit to such new RRB for
    the year 2o24-25. Furthel`, if the statutory audit position as on
    31.o3.2o24 is available, the same will be considered for sanction of
    credit limit to the banks.
    --7==-i

    6. Rate of interest on refinance


    6.1 Floatingrate:
    a. Interest rate will be market driven and as decided by NABARD from
    time to time. Presently the Rol is linked to the 3 month T Bill
    and applicable spread. The Rol will be reset on the 91st day
    of disbursement. In the event of bank repaying the entire principal
    amount, the interest will be payable along with principal amount. The
    applicable interest rate will be communicated by the Regional Office
    on day to day basis.
    b. There whl be a lock-in-oeriod of oo davs and interest will be
    payable at quarterly rests. The banks will have flexibility to repay the
    loan after 9o days or continue with the prevailing rate of interest at
    the time of reset.
    6.2 Penal changes in case of default
    RRBs which fail to honour their commitments to NABARD in
    repayment of principal, payment of interest and / or other dues by
    the prescribed due dates, will not be eligible for any t)pe of refinance
    facility from NABARD. Resumption of refinance may be considered,
    only after the bank clears the default. In the event of default, penal
    charges @ 2% p.a. (plus applicable taxes) will be charged on the
    defaulted amount and for the period for which the default persists.

    7. Repayment
    7.1 The repayments if any, can be made after the lock-in period ofgg
    davs. However. the bank has to dive a notice period of
    minimum 3 days.

    7.2 The due date for interest payment will be at quarterly rests with due
    dateson istJuly, ist october, ist January and ist April. If the due
    date falls on a holiday, it has to be paid on the next working day.

    7.3 Repayment will be accepted as indicated by the Bank irrespective of


    the order of disbursement. However, while repaying, the account
    number and the contract number mentioned in the disbursement
    letter may be indicated. In case the same is not indicated, then
    the repayments made, if any, will be adjusted on the principal
    of First Out First In. In case of re-payment after the lock in period,
    the entire amount is to be repaid and no part payments will be
    accepted.
    I-7==
    8. Operational discipline
    8.1 Excess Drawal
    NABARD will take a serious view in case of drawals beyond
    permissible quantum of refinance on account of reporting of
    incorrect data about crop loan disbursement or of NODC. In such
    cases, NABARD may call back the excess refinance availed by bank
    within 3 days along with the penal interest of 1% p.a.

    8.2 NODC
    a. Drawals by RRBs on the credit limits will be permitted subject
    to the availability of aggregate NODC (including that for ST-
    SAO limit). For this purpose, RRBs are required to furnish to
    the concerned RO of NABARD, monthly NODC statement so
    as to reach latest by 2oth of the succeeding month.
    b. At the time of each drawal, a certificate in the prescribed
    format, regarding the availability of aggregate NODC, as on
    the date of drawal will have to be furnished by the bank.
    Moreover, it may be ensured, total of normal ST (SAO) and the
    Additional ST (SAO) outstanding should not exceed the
    aggregate NODC available.
    c. The bank will submit NODC certificate (SAO) and ASAO) signed by
    the Statutory Auditor within one month of completion of Annual
    Audit by the Statutory Auditor.

    8.3 Penal charges on NODc deficit


    RRBs to maintain adequate NODC. In case of deficit in NODC, RRBs
    to make good the deficit within one month from the date of
    occurrence of such deficit. Penal charges @ 1% p.a.(plus applicable
    taxes) will be charged on the deficit in NODC for the duration of
    deficit i.e. till the date on which the amount of deficit is regularized.
    8.4 Segregation of principal and interest in the loans
    outstanding
    RRBs may exclude the interest component (overdue / non-overdue
    interest) from the outstanding amount and report the principal loan
    amount only, both in their applications for credit limit and drawal
    application, for arriving at the eligibility for refinance support from
    NABARD. Besides, only the principal portion of loans (issued,
    I-7==

    recovered, outstanding and overdues) should be reported in the


    monthly NODC statements.
    Clearance of default
    RRBs which fail to honour their commitments to NABARD in
    repayment of principal, payment of interest and / or any other dues
    by the prescribed due dates, will not be eligible for any refinance
    facility from NABARD till the clearance of default in question.
    10 Right to inspection
    NABARD reserves the right to inspect / get inspected the books of
    accounts of the RRB.
    11. Right to cause special audit
    NABARD will have the right to cause special audit of the books of
    accounts and other relevant material of the RRB either by itself or
    through other agencies to ensure that the same are maintained as per
    the rules and regulations in force and the terms and conditions of
    refinance are adhered to by the bank.
    12. Others
    AIl other terms and conditions applicable for providing refinance
    under ST (SAO) will be applicable to Additional ST (SAO) refinance
    too.
    i4 i¢ * * * i6 * * * *

    You might also like