Kerala State Co-operative Agricultural & Rural Development Bank Ltd.

A review of the recovery performance of PCARD Banks in the state reveals that the NPAs of the Primary banks are increasing year after year and have come to a situation which affects the future lending and the viable existence of the structure as a whole. Hence the urgent need to evolve a programme for rephasing the long pending NPAs was felt inevitable. Accordingly a scheme for rephrasing the period over loan cases, in which remittance is not possible in the near future was considered by the Board of Directors of the KSCARD Bank at its meeting held on 03.06.2004.

The Board considered the Grave situation faced by the PCARD Banks and the urgent need to manage the NPA by introducing an appropriate scheme to enable the borrower to remit the principal portion in convenient instalments so as to remove the period over loans from NPA of PCARD Bank and resolved to introduce the scheme exclusively for bringing down the NPA at PCARDB level on the following conditions.

(a) The PCARD Bank shall adopt necessary resolution to implement the scheme in their PCARDB.
(b) The scheme shall be applicable to all period over loans up to 30.06.2004.
(c) The scheme shall be in force up to 31.12.2004.
(d) The PCARD Banks desirous of introducing the scheme shall maintain a list of such period over       loans as on 30.06.2004 in a separate register after obtaining written consent from the borrower.
(e) A committee consisting of the President and Secretary of PCARD Bank, the Regional Manager and       the Agricultural Officer shall conduct a site inspection of each case as in (d) above and for reasons       in writing and signed by all the members, be placed before the Board of Directors of PCARD Banks       for deciding the eligibility of each case to be considered under the scheme.
(f) A list of period over cases considered under the scheme and approved by the Board along the copy      of the Board resolution shall be submitted to respective Regional Offices, the very next day.
(g) The principal portion outstanding under the period over loans as on 30.06.2004 be converted in to        a new loan for the same purpose, on the same security, if it has sufficient valuation and not        alienated, for a period not exceeding 7 years at the current interest rate as applicable to the        respective slab and sector provided the party remits simple interest @ 12% on the principal        outstanding for the entire defaulted period till 30.06.2004 in lumpsum. The entire penal interest,        other charges, interest on overdue interest and the interest to be paid over and above 12% shall       be waived.
(h) In case of rephasing the period over loans as per clause (g) above, a new Gehan be executed after       obtaining up to date encumbrance certificate and latest tax receipt. A fresh LSO shall also be       issued to the party. A list of such fresh Gehan executed shall be sent to the respective Regional       Offices.

You are also requested to send the details of period over foreclosed loans converted in to new loans to this office after introducing the scheme for our records.

We request you to take advantage of the scheme to bring down the NPA at PADB level by giving necessary advertisement etc.

S E C R E T A R Y.

Copy to:-

1. All Regional Managers,
2. CIO(N&S Zone).
3. Principal STC.
4. ADM Computer.
5. All Officers in Head Office.

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>> Computerisation - Technical Support to PCARDBs - on Contract basis (01/07/2004)

Ref: C1/TSS-PCARDB/04-05.
Date:1st July 2004.

To
The Secretary
All PCARD Banks.

Circular No. /2004

Sir,

Sub: Computerization of the Bank-Phase II-Replication of Common Application Software (CAS)- continued Technical Support required by PCARD Banks-reg:

Ref: This Office Circular letter No. 25/2000, dated 8/9/2000.

With reference to above, we have advised all PCARD Banks that the service of Data entry operators if any required can be engaged by them on contract basis.

The 'Facility Management Support' (FMS) service, being provided by this Bank since 1st November 2001, to all PCARD Banks in the State is expected to close by the end of September 2004. Hence it is required to equip the PCARDB Staff to handle the System themselves by this time.

But we have noticed that most of the PCARDB staff/Computer users, provided with required training (i.e., in Common Application Software and Computer Basic Training) both at the Staff Training Center and at the respective work site haven't utilized the training properly. As such most of the PCARDBs, reached the 'System online', stage by this time are constrained to depend on the Service of System Administrators of Regional Offices; which we could not provide in time. More over the PCARDBs have not ensured/arranged for any 'Annual Technical Support' (ATS), which is normally required for the timely support Services to the Application Software.

In the foregoing we would like to inform you the decision of the Board of Directors of the Apex Bank at it's meeting on 22/6/2000, to advise PCARDBs for initiating action, if required by them, 'to engage outside Technical Assistance/Support for Training & Replication of the Common Application Software on contract basis'.

We may like to add that the outside personnel if any engaged for the CAS Replication/ Maintenance and Training support, should have a minimum qualification of PGDCA/DAC with exposure/skill in 'VB' & 'Oracle'.

Kindly acknowledge the receipt of this letter.

Secretary.

Copy to: All Regional Managers of Regional Office,
All Section Heads at KSCARDB HO.
The CIO(SZ) & CIO(NZ).
The Principal, STC, Cochin.

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>> Rephasing Period over loans - Clarification (02/07/2004)

R2/Rephase/2003-04
02-07-2004

The Secretaries of all PCARD Banks

Sir,

Sub: Rephasing the long pending NPAs by PCARD Banks- further clarification issued - reg

Ref: This office letter of even no. dt.29-06-2004

In continuation of our letter cited, the following clarification are issued for implementation.

a. Under item (g) of the Scheme the rate of interest to be charged on the principal outstanding for the entire defaulted amount may be corrected as @12% or the document rate whichever is less.
b. Similarly in the same item (g) of the Circular cited, it is stated that interest to be collected for the entire defaulted period till 30-06-2004. This may be clarified that the interest tobe collected on the principal outstanding from the date of default to the date of (remittance of interest) rephasement of the period over loans.
c. The entire penal interest, other charges, interest on overdue interest and interest to be paid , over and above the revised rate fixed as per (a) above shall be waived.

Inconvenience caused is regretted.

S E C R E T A R Y

Copy to:
PA to President/ Vice president
All Regional Managers
CIO (NZ& SZ)
Principal STC
ADM (Computer)
All Officers at Head Office

>> Top

>> Resetting of loan outstanding by limiting maxi. interest rate to 12% (w.e.f 01/04/2004)

F1/Red/Int/2003-04
20-07-2004

CIRCULAR NO.20/2004

Sub:- Resetting interest rate on outstanding loan approved by NABARD refinance for Farm and Non-farm and NABARD Rural Housing Sector - communication - reg.

Ref:-1)Lr.No. NB.ICD/679/PPS/14/2003-04 dated 23-3-2004 of NABARD, Mumbai.
2) Lr No. NB(Kerala) No ICD/2715/ICD-OPR-29/2004-05 dated 8-7-2004 of NABARD Trivandrum.

NABARD vie letter cited 2nd, has accorded sanction for resetting the interest rate on the entire outstanding bearing interest rate above 8 % to 8 % subject to certain conditions. The Board of Directors at their meeting held on 5-4-2004 and 3-6-2004 considered the matter and resolved to implement the scheme by accepting the terms and conditions put forward by NABARD and as per which the bank has executed the required MOU with NABARD and Government and it was also decided to pass on the entire benefit of reset to the ultimate borrowers with effect from the date on which the debenture rates are reset.

In order to pass on the benefit to the ultimate borrowers a uniform reduction of 4 % to 4.5% across the border on the maximum interest rate at all levels as noted here under was approved with out considering the fact that the effective reduction in the reset allowed by NABARD is much less.

a) At Central Bank level debenture outstanding bearing interest rate above 8% will be brought down to 8% after reset.

b) At PCARDB level all loan outstanding bearing interest rate above 9.50% will be 9.50% after reset.

c) At borrower level all loan outstanding bearing interest rate above 12% will be 12% after reset.

The scheme will be in force with effect from 1-4-2004.

The PCARD Banks are requested to take advantage of the scheme by giving maximum publicity and also by persuading the loanees to remit the dues in full before availing the benefit now extended to them. Regional Managers are requested to ensure that, the PCARD Banks have passed on the benefit to the ultimate borrowers w.e.f. 01-04-2004 itself.

The Regional Managers are also requested to submit a compliance report within one month.

Secretary

To,

1) All Regional Managers,
2) Secretaries of all PCARD Banks,
3) Chief Inspecting Officer (North & South Zone)
4) The Principal S.T.C.,
5) A.D.M. (Computer) - for making necessary soft ware changes.
6) All Section Heads in H.O.
7) P.A. to President/ vice president.
8) Stock file.

>> Top

>>Lending eligibility of PCARD Banks 2004-2005 (27/07/2004)

R2/36606/2004-05
27/07/2004

THE REGIONAL MANAGER
KSCARD BANK LTD.
REGIONAL OFFICE

Sir,

Sub; Regulation of advance 2004-05 - Eligibility criteria for drawal of refinance from NABARD- Lending eligibility of PCARD banks- adviced.
Ref: 1. Letter no. NB(Kerala) No. ICD/2303/ IC - OPR-1/ 2004-05 dt. 25/06/2004 received from NABARD.

As per the reference cited, NABARD intimated the criteria to be adopted for determining the lending eligibility of PCARD Banks under the refinance assistance from NABARD for the year 2004-05.The details of the norms are given below.

Percentage of gross NPAs to Total loans and advances outstanding as on 31st March, 2003/annual recovery rate as a percentage to demand as on 30th June 2003

Eligibility of Drawal of finance

Category A:Gross NPAs up to 20% or recovery of 70% and above

Unrestricted

Category B:

i) Gross NPAs more than 20% and up to 40%/ recovery below 70% and up to 30% which ever is beneficial to the Bank

Eligibility to draw refinance during the period will be limited to;
1. The extent of amount recovered in the year ending 30th June of the previous year OR2. Lending during the year ending 31st march of the previous year OR3. average amount recovered / lent in the preceeding 3 years which ever is higher.

In case there is improvement in NPAs position as on 31st March 2004 or recovery as on 30th June, 2004 , the same will be considered for determining the eligibility of the Bank for the year 2004-05

The Board of Directors of the Bank at their meeting held on 23/07/2004 considered the issue and decided to inform the lending eligibility of the PCARD Banks based on the above criteria.

Accordingly the lending eligibility of PCARD Bank for the year 2004-05 is advised as follows.

SlNo.

Name of PCARD Bank

Lending eligibility for 2004-05(Rs. in Lakh)

Criteria adopted

The details of Sector-wise lending will be advised by the concerned sections shortly.The PCARD Banks may be advised to streamline their lending operations so that heavy lending at the last quarter of the year could be avoided.

S E C R E T A R Y

Copy to:

1. Secretaries of all PCARD Banks
2. PA To President/Vice president/Secretary/Admn.Officer/CIO(SZ & NZ), Principal STC / Addl RCS/Officer on Spl.duty/ADM(Mon) Regional Manager(L&R)

>> Top

>> The time limit for preferring claim of 50% cost of Sale Officers (06/08/2004)

No. R2/6018/2004 - 05
06-08-2004

All Regional Managers

Sir,

Sub:Belated claim of 50% reimbursement of cost of Special Sale Officer-reg

Ref: This Office letter no. R2/6018/1999-2000 dated 18/12/2001.

Please refer to the letter cited, wherein it was instructed to prefer the claim for reimbursement of 50% of cost of Sale Officer within the related year.
However at present, some of the Primary banks are preferring the claim even after one year and Regional Offices are recommending such belated claims which requires the decision of Executive Committee of the Bank.

While considering the belated claims of reimbursement of 50% cost of Sale Officer , The Executive Committee at its meeting held on 19/07/2004 has considered the need to have clarity with regard to the time limit within which the claim for reimbursement be preferred since the present time limit prescribed ' within the year' created confusion among the PCARD Banks. Hence it was resolved that in future the time limit for preferring claim towards 50% cost of Sale Officer be submitted within 6 months from the date of remittance of costs by PCARD Banks.

Accordingly, the Regional Managers are requested to advise the Primary Banks in this regard so as to reach the claims of 50% cost of Sale Officer of Primary Bank to the HO duly recommended within six months from the date of remittance by the Primary Bank. The belated claims which received after the time limit will not be considered, what ever be the reason put forward for this.

GENERAL MANAGER

Copy to: Secretaries of all PCARD Banks, PA to President/ Vice President/General Manager/AO/CIO (N&S Zone)/Principal STC/All Officers of HO.

>> Top

>> Revised unit Costs under farm sector investments (6-08-04)

Ref:No. P2/ 5374/ Vol.II
6th August 2004

All Regional Managers

Sir,

Sub: Forwarding of the revision of Unit Costs for various farm sector investments-reg

Ref: Letter no. NB (Kerala) No. ICD.APR/ 3607/ ICD-14/ 2004-05

We are forwarding herewith the revised unit costs for various farm investments received vide reference cited, for your information and reference. These costs are only indicative and depending on the level of technology, viability of the investment, location etc., optimum finance required is to be worked out, individually.

Sd /-
Agricultural Development Manager (F & P)

Encl: as above

Copy to: 1. Secretaries of all PCARDBs
2. Agricultural Officers
3. Vice- President
4. General Manager
5. Administrative Officer
6. P.A. to President
7. CIO (North& South Zones)
8. The Principal, STC.
9. All Section Heads at H.O.

>> Top

>> PCARDB s to enroll 100 new Members & increase lending by 30% (14-08-2004)

R1/DAC/168/2004-05
16/8/2004

All Secretaries,
P.C.A.R.D. Banks,

Sir,

Sub:- Doubling of Agricultural Credit - request to submit statement showing overdue of agricultural loans as on 31/3/2004 - reg.

The Hon'ble Union Finance Minister has announced various relief measures to help the farmers in distress and farmers in arrears in respect of agricultural loans taken from our Bank and have suffered production and income losses on account of drought or other calamities for two or more successive years during the past 5 years or whose default was on account of serious illness of self or close relatives on similar circumstances beyond the control of the borrowers. The PCARD Banks are therefore requested to furnish the details in respect of overdue under agricultural loans falling under the above categories as on 31/3/2004 in the proforma enclosed at the earliest.
The matter may be treated as most urgent.

GENERAL MANAGER.

Encl: Proforma.

Copy to: All Regional Managers - to see that the details called for will reach the H.O. by 10/9/2004.

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>> Limit of Valuation of security property - enhanced by RCS (16-08-04)

Endt: No. G1/New/PCARDBs/2003-04, dated: 16/08/2004

Copy Communicated to: All section Heads at HO, All RMs, CIO (North and South Zone), Principal STC, Secretaries of all PCARDBs.

Sd/-
Administrative Officer.
------------------------------------------------------------------------------------------------------------
Office of the Registrar of Co-operative Societies
Kerala, Thiruvananthapuram.

Date: 22/07/2004.
CLT (4) 53537/03

CIRCULAR No: 26/04

Sub: Disbursement of Long term Loans-Simplification of Procedure modification - regarding:

Read: 1. This office circular No.89/80 dated, 30/12/1980
2. This office circular No.21/86 dated, 07/06/1986
3. This office circular No.40/86 dated, 28/09/1986
4. This office circular No.22/94 dated, 14/07/1994
5. Minutes of the meeting held on 03/07/2002 in the Chamber of the Hon'ble Minister for Co-operation & Ports.

As per the circulars cited 1 to 4 the ceiling was fixed for the valuation of security properties/ hypotheca by the supervisors, Agricultural Officers and the Assistant Registrar/ Valuation Officers working in the Primary Agricultural and Rural Development banks in the State.

In the joint meeting of Kerala State Co-operative Agricultural & Rural Development Bank authorities, Assistant Registrar/valuation Officers, Sale Officers and Department Officers held in the Chamber of Hon'ble Minister for Co-operation and Ports, it was decided to enhance the limit of valuation of hypothecated by Agricultural Officers for loans up-to Rs.2 lakhs and loans above Rs. 2 lakhs by the Valuation Officers posted in Primary Co-operative Agricultural & Rural Development banks from Co-operative department and accordingly the para 2(4) of the circular cited four is partially modified as follows:-

2(4) valuation:- The senior supervisors of the Primary Co-operative Agricultural & Rural Development banks are authorized to value security properties in respect of loan applications up-to and including Rs.20,000/-.The Agricultural Officers working in the Banks are authorized to value the security properties / hypotheca upto Rs. 2 lakhs and the valuation of security properties/hypotheca in respect of loan application above Rs. 2 lakhs are authorized by the Assistant Registrar /Valuation Officers from the Co-operative department.
The modification will have effect from the date of 17/12/2002.

(Sd/-)
K.KESAVAN,
Registrar of Co-operative Societies (In Charge)

To
1. The President/Secretary,
Kerala State Co-operative Agricultural and Rural development Bank Ltd., Thiruvananthapuram.
2. The President of all Primary Co-operative Agricultural & Rural Development Banks.
3. The Additional Registrar/Officer on Special Duty, Kerala State Co-operative Agricultural and Rural development Bank Ltd.Thiruvananthapuram-695 001.
4. The Assistant Registrar/Valuation Officer of all Primary Co-operative Agricultural & Rural Development banks
5. All Joint Registrars (General & Audit)
6. Joint Registrar / Concurrent Auditor, Kerala State Co-operative Agricultural and Rural development Bank Ltd.
7. All Assistant Registrars (General & Audit)
8. The Representative of Trustee, Kerala State Co-operative Agricultural and Rural development Bank Ltd.
9. Editor, Co-operative Journal, state Co-operative Union, Thiruvananthapuram.
10. Editor, Sahakaranaveedhi/Sahakarana Journal.
11. All Principals. Co-operative training Centres.
12. Stock file
13. Spare.

// Forwarded by //

For Registrar of Co-operative Societies.

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>> GPA Insurance cover to the Credit Card holders (19-08-04)

D1/SCC/03-04
Date: 19-08-2004.

To
1. The Secretaries of all PCARD Banks.
2. The Regional Managers of all R.O's.

Sir,

Sub: Swarojgar Credit Card Scheme (NFS - SCC)- Group Personal Accident Insurance Cover to credit card holders- MOU made with United India Insurance Co. - working instructions issued.

Ref: This office letter of even no. Dated 06-07-2004.

Please refer the letter cited. As mentioned in the Manual on SCC scheme, we have entered in to an agreement with M/S United India Insurance Co. in respect of Groups Personal Accident Insurance, covering the Credit Card - holders of all PCARD Banks. The salient features of the MOU are detailed below.

i. As per the agreement reached between the Bank and M/S United India Insurance Co., as soon as the SC Card credit limit is sanctioned to a person and the premium amount remitted to the insurer's Bank current account, the person will automatically be got insured. No other paper work is involved for this process.

ii. This group Personal Accident Insurance Policy shall cover the credit card holders of all PCARD Banks, falling under the age group of 18 to 70 years, for a period of five years, commencing from the date of insurance.

iii. The capital sum insured is Rs. 1, 00, 000/- against death due to accident / permanent total disablement due to accident / loss of two limbs or two eyes due to accident or Rs. 50, 000/- against loss of one limb/ one eye due to accident.

iv. Up on happening of any event giving rise to a claim under the policy, PCARD Bank shall give written intimation to the insurer and or its nearest office along with supporting documents like claim form, FIR lodged with police authorities (restricted to vehicle accident) , Postmortem report, Death certificate, Medical records including Medical certificate and disability certificate and any other documents the Insurer may call for. The PCARD B's may make aware the borrowers the need for lodging timely claim to the Bank.

v. The period of insurance shall commence from the time of sanction of loan and the premium is Rs. 126/- per cardholder and all claims shall only be released to the concerned PCARD Banks and not to the cardholder.

The PCARD Banks are also advised to follow the working instructions detailed here under:-

i. All PCARD Banks, implementing the NFS - SCC Scheme shall make an advance payment of Rs. 350/- to the United India Insurance Company Ltd., Branch office No.III, Eranakulam, by remitting the same to the bank account of United India Insurance Company (current account no. 1395) at the nearest Federal Bank Branch. The concerned Regional Managers shall ensure the same and report it to H.O.. This amount act as replenishment advance to enable the insurer to effect insurance coverage, from the date of sanction of loan.

ii. The PCARD Banks, while sanctioning loans under SCC scheme, shall remit the insurance premium @ Rs. 126/- per card holder to the insurer's bank account (current account no. 1395) at the nearest Branch of Federal Bank, by cheque, twice a week, on Mondays and Thursdays with out fail. Over and above this while more than three cards are issued, its premium shall on the same day itself be remitted so that there will not be any problem on insurance coverage.

iii. Banks shall apportion the amount required to meet the insurance premium from the service charge of Rs. 250/- already collected along with loan application and no separate charges shall be levied for this purpose (Please refer the Manual).

iv. A statement showing the name, age, occupation and credit card number of the borrowers under the scheme, along with the copy of bank remittance slip for the premium remitted shall be sent to the "The Branch Manager, United India Insurance Company Ltd., Branch Office No. III, " Sharanya", Hospital Road, Eranakulam , Pin - 682 011, (Tel. 0484 - 235 2236, 2366893) on a weekly basis, preferably on all Thursdays.

v. The Insurance Company shall send stamped receipt for the premium amount and copies of insurance policy, based on the consolidated weekly statement, and mentioned above. The bank, in turn shall distribute the policy to the cardholders.

The Secretaries of all PCAR D Banks are advised to comply with the above instructions.

Sd/-
GENERAL MANAGER.

Copy to:
1. The Administrative Officer
2. C I O's NZ& SZ
3. The Principal STC
4. All Section heads in H.O
5. PA to President / Vice president.

>> Top

>> Belated claim of 50% reimbursement of cost of special Sale Officers(6-8-2004)

No R2/ 6018/ 2004-05 06-08-2004

All Regional Managers

Sir,

Sub: Belated claim of 50% reimbursement of cost of special Sale Officers- reg

Ref: This Office letter no. R2/ 6018/ 1999- 2000 dated 18-12-2001.

Please refer to the letter cited, where in, instructed to prefer the claim for reimbursement of 50% cost of Sale Officer with in the related year.

However even at present, some of the PCARD Banks are preferring the claim even after one year and the regional offices are recommending such belated claims which requires the decision of the Executive committee of the bank.

While considering the belated claims of disbursement of 50 % cost of Sale Officer, the Executive Committee at its meeting held on 19-07-04 has considered to need to have clarity with regard to the time limit with in which the claim for reimbursement be preferred since the present time limit prescribed within the year crated confusion among the PCARD Banks. Hence it was resolved that in future, the time limit for preferring claim towards 50% cost of sale officer be submitted with in 6 months from the date of remittance of the costs by the PCARD Banks.

Accordingly, the Regional Managers are requested to advise the Primary banks in this regard so as to reach the claims of 50% cost of Sale officer of Primary bank to HO duly recommended with in 6 months from the date of remittance by the Primary bank. The belated claims which are received after the time limit will not be considered, what ever be the reason put forward for this.

Sd/-
General Manager

Copy to.
Secretaries of all PCARDBs
PA to President/ Vice-President/ General Manager
AO/ CIOs (NZ& SZ)/ Principal STC/ All Officers at HO.

>> Top

>> Reduction of interest rate on Ordinary Loans (1/09/04)

OH.1/OD/2003-04.
Date: 01/09/2004.

CIRCULAR 23/2004.

Sub: Reducing the interest rate on outstanding Ordinary Debentures-reg:

The Bank has been receiving requests from various quarters to reduce the interest rate on loan outstanding under ordinary lending consequent to the reduction of interest rate on NABARD assisted loan outstanding w.e.f. 1-4-2004.

The matter was considered by the Board of Directors of the Bank at their meeting held on 22.8.2004 and resolved to implement the reduction of interest rate on ordinary loans on the same lines of NABARD assisted loans by giving a reduction of interest rate across the boarder @ 5.25% at PCARD Bank level and 4% at borrower level as under:

1. To reduce the interest rate on Ordinary loan outstanding at the rate above 9.5% to 9.5% at PCARD Bank level.

2. To reduce the interest rate on Ordinary loan outstanding at the rate above 12% to 12% at borrower level.

3. The revised rate will be made applicable to the outstanding ordinary loans w.e.f
1-9-2004.

The PCARD Banks are requested to take advantage of the scheme by giving maximum publicity and also by persuading the loanees to remit the dues in full before availing the benefit now extended to them. Regional Managers are requested to ensure that the PCARD Banks have passed on the benefit to the ultimate borrowers w.e.f., 1-9-2004 itself. The Regional Managers are also requested to submit a compliance report within one month.

GENERAL MANAGER.

To,
1. All Regional Managers,
2. Secretaries of PCARD Banks,
3. CIO (North & South Zones),
4. Principal, STC,
5. ADM (computer), -For Making necessary Software change.,
6. All Section Heads in HO.
7. PA to President/Vice-President.
8. SF

>> Top

>> One year Morotorum to Agrl: Loans w.e.f 23/01/2004(04-09-2004)

R1/ADR/2001-02 04/09/2004

CIRCULAR NO 24/2004

Sub: Kerala Agricultural Debtors (Temporary Relief) Act 2001- Implementation of the scheme during         2004- 05- reg:

Ref: 1. This Office circular No 14/2002 dt 8.4.2002.
         2. - do- Letter No R1/ADR/2001-02 dt 19.12.02.
         3. Circular No 25/2004 dt 16.7.2004 of Register of Co-op Societies.

Please refer to the letters cited 1st and 2nd by which we had communicated the implementation of the Kerala Agricultural Debtors (Temporary Relief) Act 2001 and the subsequent amendment of the definition of the word "debt" in the light of the judgment of Hon. High Court of Kerala.

Now Register of Co-op: Societies as per circular No 25/2004 dated 16.7.2004 has ordered one year moratorium to the Agricultural Loans w.e.f 23/01/2004 coming under the purview of Kerala Agri. Debtors ( Temporary Relief) Act 2001. During the moratorium period, interest and penal interest need not be collected. The loss on account of this will be reimbursed by the Government. The contents of the circular are self explanatory.

The Board of Directors of the Bank at their meeting held on 22.8.2004 resolved to implement the scheme through the PCARD Banks. Hence the PCARD Bank are requested to make use of the scheme to the maximum extend possible and claim reimbursement from Government.

All Regional Mangers are also requested to see that the scheme is implemented through the PCARDBs and also ensure that they have submitted the claim for reimbursement in time.

GENERAL MANGER

To
1. All Regional Managers
2. Secretaries of All PCARDBs
3. CIO (N & S) / Principal, STC
4. ADM ( Computer) / All Section Heads in HO
5. PA to President/ Vice- President/ SF

>> Top

>> Relaxation of lending eligibility for Educational Loans (8-10-04)

No/F3/NFS-CLS/Rules/01-02
8-10-04

CIRCULAR NO

Sub: Relaxation of lending eligibility for Educational Loans-communication of- reg.

As per existing rules, PCARDBs having over due above 50% as on 30th June of the preceding Co-operative year are eligible for lending up to 2 lakhs only under NFS-CLS. The Bank has been receiving representations from such PCADBs requesting to increase the lending eligibility especially in the case of lending for educational purpose where an amount of 5 lakhs is needed in most cases.

The above matter was considered by the Board of Directors of the bank at its meeting held on 17-09-2004 and permitted the PCARD Banks having over all recovery between 30% to 50% to disburse Educational loans up to Rs. 5 lakhs as a special case and the existing restriction be continued in respect of lending under other NFS (CLS) Loans.

The PCARDBs are requested to follow the above direction while disbursing loans under Education scheme.

Sd/-
General Manager

To
1.The Secretaries of all PCARDBs
2.All Regional Managers.
3.CIOs (NZ & SZ)
4.The Principal, STC.
5.All Officers at the HO.

>> Top

>> Deferment of Demand on agri Loans for 1 year (04/11/2004)

R1/12838/2003-04
04/11/2004.

1. All Regional Managers
2. Secretaries of all PCARD Banks

Sir,

Sub: Relief to borrowers- deferment of demand on Agricultural Loans for one year- clarification issued- reg.

Ref: This office letters of even no. dated 05/04/2004 , 07/04/2004, 08/06/2004 and 15/06/2004.

As per the letters cited, we have informed all Regional managers andcsecreataries of PCARD Banks to defer the demand failing due from 01/04/2004 to 30/09/2004 for a period of one year. Some of the Primary Banks and regional offices are enquiring whether the demand fall due after 30/09/2004 gets the benefit of deferment. In this connection it is clarified that the demand due from 1.10.2004 should invariably be demanded without any deferment both at PCARD Bank level and RO Level.

GENERAL MANAGER

Copy to: PA to President, Vice President,PA to GM, CIO(NZ & SZ) Principal STC, All Offices in the HO Section.

>> Top

>> Special arrear Collection drive- instructions issued. (05/11/2004)

Ref. no. R1/Spl.colln/2004-05
date: 05/11/2004

The Regional Manager

Sir/ Madam

Sub: Recovery of overdues 2004-05- special arraer collection drive- instructions issued- correction reg.

Please refer to theletter No. R1/spl.colln/2004-05 dated 30/10/2003 in which the instruction No.4 may be corrected and read as "The Nodal Officers should verify the loans taken by the Staff Members/ their close relatives of the PCARDBanks and KSCARDB and a seperate status report should be furnished.

GENERAL MANAGER

Copy to: All Nodal Officers in the HO, PA to President/Vice President, PA to General Manager.

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>> NFS- CLS Educational Loan- Disbursement of Semester fees (15/11/2004)

F3/NFS-CLS/EDUN.LOAN/2003-04.
15/11/2004

The Regional Managers.
All Secretaries of PCARDBanks

Sir,

Sub: NFS-CLS Education Loan - Disbursement of Semester fees - reg.

Ref: This Office Circular No.9/2004 dt.5/4/2004.

It has been brought to our notice that the Primary Banks are experiencing practical difficulty in releasing the subsequent instalments of Education Loan due to the delay in getting marklist of the previous Semester from the concerned Universities for ensuring that the student is got admitted to the 2nd or subsequent semester for releasing respective instalment of fees as envisaged in the Scheme rules.

Requests have also been received from the Regional Offices whether to reimburse the fees and other expenses already remitted by the students, for the semester/year examination in case the parent\student submits application for Education Loans subsequently.

These requests of PCARD Banks were considered by the Board of Directors at the meeting held on 10/11/2004, and it was resolved that, in case the receipt of marklist is delayed, the subsequent instalments can be released on the basis of the Performance Report of the student from the Head Of Institution that the student is eligible to get admitted for the next semester. An affidavit from the parent and student stating that the marklist will be produced immediately on receipt and in any case before availing the fee for the next semester/year.

Regarding the request for reimbursement of fees of the previous year, it was resolved that, the 1st year fees also can be considered for reimbursement during the subsequent year if all other terms and conditions are satisfied. So the following clause may be incorporated to the existing rule.

	Existing	To be incorporated
XVI. The Mode of Disbursement	1. The Loan instalments shall be released yearly at the time of beginning of each Semester of the course as the case may be. 2. The instalments shall be ……………………. Be deposited with the Primary Bank.	1(a). The 1st year fees also can be considered for disbursement during the subsequent year provided all other terms and conditions are satisfied. 2(a). In case the receipt of Marklist is delayed, the subsequent instalments can be released on the basis of the Performance Report of the student from the Head of Institution that the student is eligible to get admitted to the next semester. An affidavit from the parent and student stating that the marklist will be produced immediately on receipt of the same and in any case before availing the fee from the next semester/year.

The Regional Managers are requested to release the instalments under Education loan according to the above direction, when ever such requests are received.

GENERAL MANAGER

Copy to:

Section Heads at H.O.
CIO (South & North) Zones.
Principal, STC.

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>> NABARD RURAL HOUSING SCHEME - Financing for purchase of flats Terms and conditions
(19/11/2004)

NO.F2/NAB-RHS/RULES/VOL-2/2003-04
19/11/2004

CIRCULAR NO.30/2004

Sir,

Sub:- NABARD RURAL HOUSING SCHEME - Financing for purchase of flats Terms and conditions - communicated - reg:-

Ref:- 1. Request received from RM Ernakulam.
2. This office circular No.36/2002 dt:18/11/2003.

With reference to the letter under Ist cited, we may inform that although the Bank has been financing for purchase of ready built houses under NABARD Rural Housing Scheme, it is noticed that, no PCARD bank has disbursed any amount for purchase of flats, so far.

Now it has been reported by some Regional office that, the Primary Banks are receiving applications for loans for purchase of flats and also requested to advice them the terms and conditions to be followed while advancing for purchase of flats.

It may be noted that as only proportionate landed property is involved in the case of flats as security it is advised that the following documents may be got executed by the loanee in favour of PCARD bank, in addition to the usual execution of Gehan.

1. Allotment letter issued by the builder to the purchaser/ ie., loanee.

2. An agreement (to be executed) to mortgage the flat by the borrower in favour of the PCARD bank (form enclosed).

The following points may also be taken in to account while processing the loans for the said purpose:-

1. Title of the land owner should be verified.

2. Terms and conditions of the agreement entered in to between owner of the land and builder should be verified.

3. The proportionate share of the purchaser over the individual share in the land, has to be specifically mentioned in the allotment letter. It may also be specified the actual extent/area of the flat whether any house number has been allotted from Corporation Municipality etc.

4. In the allotment letter, a specific clause may be added, to the effect that, in case the borrower committed default, in repayment of loan instalment, the Primary Bank will get every right to sell the flat with out any objection from the builder.

5. Apart from the execution of Gehan, the sale deed to be executed by builder in favour of borrower should also be taken as security/possession of Bank till the loan is fully settled.
Regional managers are requested to communicate the above guidliness to the Primary Banks for advancing loans purchase of flats and advise them to comply with the terms and conditions strictly.

GENERAL MANAGER.

Encl: 1. Form of copy of Allotment
2. Form of Agreement to mortgage.

To
The Regional managers
All Regional Offices.

Copy to:
PA to President/Vice President/GM/AO/CIO(N&S)
Principal S.T.C/All Section Heads/SF.

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>> Doubling of Agricultural Credit-request for implementing (23-11-2004)

R1/DAC/168/2004-05.
23-11-2004.

CIRCULAR NO:31/2004

Sub:- Doubling of Agricultural Credit-request for implementing the Scheme reg..

Ref:- Letter No.NB-IDD.Co-op/LT/653/K-32/2004-05 dated 29/06/2004. of NABARD

NABARD as per letter cited communicated the announcement made by the Hon"ble Union Finance Minister regarding the measures for enhancing the flow of credit to agricultural sector and the relief measures to be given to the farmers in the country. The Board of Directors of the Bank on 23/07/2004 and on 10.11.2004 considered the matter and resolved to implement the Scheme through our PCARD Banks.

The salient features of the relief scheme to be implemented are as follows.

1.Relief to farmers in distress due to successive drought/flood/other calamities.

i. The Scheme covers farmers who have suffered production and income losses on account of successive drought, flood or other calamities for two years or more successive years during the period of 5 years ending 31.03.2004 in districts declared as calamity affected by the State Government.

ii. This will be applicable for loans taken only for agriculture and allied activities.

iii. Overdue instalment and interest overdue as on 31/03.2004 may be clubbed together and rescheduled into term loan for a period of 5 years including moratorium of 2 years.

iv. In the case of loans where the existing repayment schedule is longer than 5 years, thePCARD Bank may reschedule only the overdue principal and interest into a separate 5 year term loan account including an initial moratorium of 2 years. The repayment commitment in respect of the non -overdue remaining principal as on 31.03.2004 and interest thereon should be collected as per original schedule.

v. The rescheduled loans will carry current rate of interest applicable to similar loans.

2. Scheme for providing relief to farmers in arrears

1.The scheme covers farmers whose dues to the Banking system are in arrears and who have become ineligible for fresh credit.

2.The loans outstanding of farmers in default who are identified as non-willful defaulters, as per norms shown below.

a)Who have repaid at least 20-30% of the principal installments and interest fallen due.

b)Whose asset created out of the loan have been lost, became infructuous or stolen.

c)Whose default was on account of serious illness of self or close relatives or similar circumstances beyond the control of the borrower.

3.Loan outstanding of the identified farmers whose accounts are in arrears and classified as overdue ,substandard or doubtful as on 31.03.2004.

4.The scheme will cover only for loans taken for agricultural and allied activities.

5.The loan outstanding as on 31.03.2004 for the above purpose may be rescheduled into a term loan repayable over a period of 3 to 5 years.

6.Interest outstanding as on 31.03.2004 may be collected in lumpsum.

7 .In the case of term loans and previously rescheduled loan where the existing repayment schedule is longer than 3to5 years, the overdue part of the principal shall only be rescheduled.The remaining part of the loan shall have originally contracted schedule of re- payment.

8.The rescheduled loan will carry current rate of interest.

In both the schemes, the PCARD Bank shall obtain written request from the borrower and the same will be disposed within one month from the date of receipt. The Board of Directors of the PCARD Bank shall adopt necessary resolution to implement the scheme. The list of eligible borrowers on the basis of their application will be prepared by the Secretary/Branch Manager as the case may be and the scheme will be as per the existing procedure followed by the PCARD B Bank.

The PCARD Banks are requested to implement the Scheme with Immediate effect in view of the advantages available to the PCARD Banks especially to bring down the NPA % and to attain the unrestricted lending eligibility.

You are also requested to send the details of the scheme implemented in the proforma already communicated vide this office letter of even No. dated 09/09/2004.

General Manager.

To
1. Secretaries of all PCARD Banks.
2. All Regional Managers.
3. CIO north & South Zones.
4. Principal STC.
5. All Section Heads in H.O.
6. PA to president &Vice President
7. PA to GM.

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>> Enhancing the limit of number of Vehicles under SRWTO scheme30-11-2004)

No. F1/ NF- SRWTO/ 2004-05
30-11-2004

CIRCULAR NO 33/ 2004201. DPD. NFS 12/ 2004 dated 26-07-04

Sub: Enhancing the limit of number of Vehicles under SRWTO scheme- reg.

Ref: NABARD Circular No. 201. DPD. NFS 12/ 2004 dated 26-07-04

NABARD vide Circular No. 201. DPD. NFS 12/2004 dated 26-07-04 communicated that the maximum Individual limit under SRWTO scheme has been enhanced to 10 new vehicles from the present limit of 2 vehicles. The Board of Directors at their meeting held on 10-11-04 considered the matter and it was resolved to enhance the maximum Individual limit under SRWTO scheme to 10 new vehicles, subject to the maximum existing loan limit to Rs. 20 lakhs per borrower with a ceiling of Rs. 30 lakhs in the total out lay of the investment.

All other terms and condition of the scheme remain unchanged. The PCARD Banks are requested to implement the scheme by adhering to the usual terms and conditions applicable to SRWTO scheme.

General Manager

To
All RMs / Secretaries of all PCARDBs

Copy to.
PA to President/ Vice President/ GM/ AO
Section Heads at HO/ Principal STC
CIO North and South Zone

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