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<< Circulars Circulars of KSCARDB (2005) DECEMBER 2005: >> Computerization- CAS support activities-recruitment of SAs (15-12-05) >> Computerization- further field level training(14-12-05)
>> Disaster Recovery Systems and Business Continuity Planning (28-10-05) >> Good Pay Master Scheme 2006 (28-10-05) >> Rules for Governing the Sanction of Loans (24-10-05) >> Gold Loan Scheme/increase interest margin(17-10-05)
>> Capital Investment Subsidy Schemed-Organic Farming (08-09-05) >> Financing of Jatropha plantation- implementation (08-09-05)
>> Financing of Second hand vehicles with NCDC fund (27-08-05) >> Kisan Credit Card(KCC) under NCDC line of credit (19-08-05) >> NHB Rural Housing Scheme (18-08-05) >> G.L.Scheme- maximum borrowing limit(12-08-05) >> S.T.Credit (F.S.) through issue of KCC for the Co-operative year 2005-06 (05-08-05)
>> Swarojgar Credit Card scheme under Non- Farm sector (SCC) (15-07-05) >> Strategies for NPA Management-Revision in norms-Communications (15-07-05) >> Cattle Insurance Scheme (13-07-05) >> Vehicle loan to PCARDBs by KSCARDB amendment of rules (10-07-05)
JUNE 2005: >> Scheme for advancing working capital loans to traders and small industrial(27-06-05) >> "Know your Customer” norms (27-06-05) >> SGSY- Interest rates to be changed on group loans (22-06-05) >> Building loans to PCARD Banks by KSCARD Bank- revision of rate of interests (21-06-05) >> Repayment period of refinance under NHB Rural Housing Scheme (17-06-05) >> Crop Development programme of the Department of agriculture (15-06-05) >> Individual stay allowed by District Consumer Redressal Forums (10-06-05) >> Interest on NABARD Rural Housing loans under Repairs/renovation purpose (08-06-05) >> Scheme for development of Agrl. Marketing Infrastructure (02-06-05)
MAY 2005: >> Implementation of the scheme for advancing working capital loan (21-05-05) >> Lending to PCARD banks having overdue with Central bank (14-05-05) >> Venture capital Fund for dairy/poultry sectors (06-05-05) >> Short term credit for Agricultural and Allied Activities (04-05-05)
APRIL 2005: >> Revision of interest rate on refinance under FS,NFS, and NABARD RHS (27-4-05) >> Powers of supervisors of PCARD Banks for preparation of TER (18-4-05) >> Short Term Loans (FS) through KCC (07-04-05)
MARCH 2005: >> Deficiencies found in sanctioning of loans-suggestions (29-3-05) >> Rating of Primary Banks - guidelines issued (26-3-05) >> NABARD/ RHS- Enhancing of ceiling under repairs/ renovationd (16-3-05)
FEBRUARY 2005: >> Doubling of Agricultural Credits-Directions issued (16-2-05) >> Visit of Senior Officers (1-2-05)
JANUARY 2005: >> Enhancement of Legal Fees (28-1-05) >> System Administrators appointed on Contract basis- TAs (20-1-05) >> Flexi- credit for Homestead farms-working instruction (18-1-05) >> Vigilance Officer- Power entrusted with (11-1-05) >> Simplification of Loaning Procedures-Revised Norms (11-1-05) >> Sanctioning of CL for System Administrators (6-1-05) >> Re-phasing the long pending NPAs by PCARD Banks (3-1-05) >> Income tax for the financial year 2004-05 (3-1-05)
>> Income tax for the financial year 2004-05 (3-1-05) No. SW3/ IT/ TVDK/ 00677F/ 2003-04 CIRCULAR NO 1/ 2005 Sub: Income tax for the financial year 2004-05 (Assessment year 2005-06)-reg.
1.Details of LIC premium directly remitted, if any.
Sd/- Copy to: All staff members of the Bank.
>> Top
>> Re-phasing the long pending NPAs by PCARD Banks (3-1-05) No R2/ Re phase/ 2003-04 The Secretaries of all PCARDBs Sir, In the Board meeting held on 03-062004, it was resolved to introduce
a scheme exclusively for bringing down the NPA at PCARDB level by
re phasing the period over loans up to 30-06-2004 and the scheme shall
be in force up to 31-12-04. On reviewing the progress of rephasement of period over loans, the
loan rephased is very negligible when compared to period over loans. Sd/-
>> Top
>> Sanctioning of CL for System Administrators (6-1-05) E1/ CT/ 2003-04 CIRCULAR NO 2/2005
Ref: Board decision dated 14-12-2004 This is to inform that in the light of the report of the sub-committee on computerization, the Board meeting held on 14-12-2004 resolved that the System Administrators appointed on contract basis be allowed 12 days casual leave in a year. Sd/-
>> Top >>Simplification of Loaning Procedures-Revised Norms (11-1-05) No. G3/ Seminar/ 2000 CIRCULAR NO: 3/ 2005 Sub: Simplification of Loaning Procedures- Loan sanctioning power
of PCARD Banks-Revised Norms communicating of- reg. The Board of Directors of the bank at their meeting held on 14-12-2004
considered the request of PCARD Banks to revise the loan sanctioning
power of PCARD Banks which was approved as per Board resolution dated
10-08-2001, in view of the drastic reduction in recovery due to reasons
beyond the control of PCARD Banks such as draught, fall in productivity
and prices of cash crops etc.
Sd/ To
>> Top >> Vigilance
Officer- Power entrusted with (11-1-05) No. E1/19864/ 2004-05 PROCEEDINGS Sub: Vigilance Officer- Power entrusted with- reg. The Board of Directors of the Bank considered the
recommendation of NABARD and found genuine the requirement of a
vigilance Officer to Bank. In the Board meeting dated 14-12-2004,
it was resolved to entrust the power of Vigilance Officer with the
Administrative Officer of the bank. Copy to: PA to President, Vice President, All Directors, GM, AO, CIO SZ & NZ,Principal STC, All RMs, FM I & II, ADMs, E2, SWI, SF.
>> Top >> Flexi- credit
for Homestead farms-working instruction (18-1-05) CIRCULAR NO 5/ 05 Sub: Flexi- credit for Homestead farms in Kerala- working instruction issued- reg Ref: NABARD RO letter No NB ( Kerala)/ ICD/ 8430/ ICD-49/2004-05 dated 20-12-04 The Flexi- Credit for Homestead farms in Kerala was initially implemented on a Pilot basis, in the three districts viz; Kollam, Kozhikode and Kannur. Considering the good response in these districts, NABARD vide circular cited, has decided to extend financing for Homestead farming systems to all the districts of Kerala. In homestead farming, the farmers cultivate a variety of crops of seasonal and perennial nature and also take up activities like dairying, goat/ pig/ poultry rearing etc.This initiative will will go a long way in achieving the goal of doubling the agricultural credit in next 3 years. Objective of the scheme The major objective of financing Homestead farming are: 1.To provide the farmers with need based credit which would enable
them to meet all the credit requirements of their Homestead farms. Eligible Activities:- Assessment of Credit:- Down payment:- Physical and Financial programme:- Repayment:- Rate of Interest, maximum area and security for loan:- NABARD Refinance:- Reporting System:- Monitoring and Supervision:- Sd/-
>> Top
>> System
Administrators appointed on Contract basis- TAs (20-1-05)
E1/ CT/ 2004 20-1-2005 CIRCULAR NO 6 / 2005 Sub: System Administrators appointed on Contract basis- TA- reg:
To Copy to. PA to President/ Vice- President/ GM/ AO/ ADM Computer/SW1/ SF.
>>
Top >> Enhancement of Legal Fees (28-1-05) No. G3/ Seminar/ 2000 28-01-2005 CIRCULAR NO 7/ 2005 Sub: Enhancement of Legal Fee- reg:- Ref: 1. Decision of the Board meeting dt14-12-2004 Registrar of Co-operative Societies vides Circular No. 28/ 94
dt. 3/10/94 had issued instructions revising the legal fee payable
to Legal Advisors of the PCARDBs as per Rs.5 per Rs.1000/- subject
to a minimum of Rs. 25 and a maximum of Rs.100 per application.
Consequently, vide this office letter no. G3/Seminar/ 2000 dt.
20/6/200, bank has requested RCS to further enhance the maximum
limit to Rs.200/- . But the sanction of RCS is yet to be received.
Sd/- To
>> Top >> Visit of Senior
Officers (1-2-05) CIRCULAR NO 8/ 2005 The Senior Officers of the bank are requested to record their observations
and suggestions if any, during their each and every visit at Regional
Offices of the bank and in the PCARDBs in the register maintained
there for the purpose with time and date of their visit and they should
also record therein, the progress/ rectification, if any, made to
their earlier visit. Sd/- To All Section Heads at H.O. Copy to:
>> Top >> Doubling
of Agricultural Credits-Directions issued (16-2-05) R1/ DAC/ 168/ 2004-05 All Regional Managers Sir, Sub: Doubling of Agricultural Credit-Submission of consolidated list to HO- Directions issued-reg Ref: This Office Circular no. 31/2004 dated 23-11-2004. Copy to >> Top >> NABARD/
RHS- Enhancing of ceiling under repairs/ renovationd (16-3-05) CIRCULAR NO. 10/05 Sub: NABARD/ RHS- Enhancing of ceiling under repairs/ renovation of-reg. Ref: Circular no. 16. ND. DPD.NFS/ 3/ RH-1/ 2005
dated 28-01-2005 of NABARD. Sd/- To
>> Top
>> Rating of Primary Banks - guidelines issued (26-3-05) INS1/IX V.I/1108/Rating/2003-04
1.Kerala State Co-operative Agricultural and Rural Development Bank has decided to introduce a system of rating of PCARD Banks, based on its performance in various aspects/areas so as to have a realistic assessment on the base level operating units. 2.The Board of Directors of this Bank at their meeting held on 14/3/2005, have approved the scheme of rating of PCARD Banks and resolved to introduce the scheme of rating from the financial year 2005-06. The guidelines/norms for the rating of PCARD Bank have been approved by the Board of Directors, which vest with the right to make amendments/changes thereon. 3.As per the scheme of rating of PCARD Banks, the best performed, runner up and the 2nd runner up Primary Co-operative Agricultural and Rural Development Banks, based on the marks scored in the rating will be appreciated with Citation and Cash Award, as detailed below. 1st performed PCARD Bank (with highest marks in
rating Rs.50000/-) 4.The performance of the PCARD Bank is rated on the basis of lending, recovery, human resources development policy etc. The areas covered/maximum marks for each sector etc. are detailed in the annexure, enclosed with this Circular. 5.The guidelines on eligibility, time schedule, norms for marks allocation etc. are detailed in the guidelines annexed to this Circular. 6.The Scheme will be introduced from the financial
year 2005-06, pertaining to the figures of 31/3/2006 and the Audit
Report of 2005-06. The recovery performance has to be assessed
from the figures as on 30/6/2005. As such intensive efforts for
maximum recovery have to be initiated for the remaining three
months during the current Co-operative year. 8.The awards will be declared before the end of the next financial year and Citation and Cash Awards will be distributed in a befitting function. 9.The Executive Committee of this Bank is entrusted with the task of selection of 3 best performed PCARD Banks based on the ratings every year. 10.The success of scheme of the rating of PCARD
Bank is by and large depends on the whole-hearted co-operation
and the competitive approach of the Primary Banks. It is therefore
requested that Primary Banks may take this scheme as an opportunity
to assess themselves on their performance, and the marks scored
may be considered as an indication to equip themselves for a better
performance in the ensuing year. The contents of this Circular
and the guidelines/norms thereon may be placed before the Board
of Directors of the PCARD Banks for their information.
To Copy for information to: GUIDELINES 1.The rating is applicable to PCARD banks which
had functioned in full swing for the past 5 years in relation
to the year of rating.
>> Top >> Deficiencies found in sanctioning of loans-suggestions (29-3-05)
CIRCULAR NO 13/ 2005 Sub: Deficiencies found in sanctioning of loans and monitoring of borrowal accounts by banks- suggestions of NABAD-reg. Ref: NABARD Circular No. 298/ DOS.54/ 2004 dated 8-12-2004 NABARD, as per circular cited, had forwarded a text
of observations on frauds and administrative lapses in the processing
of loan applications and monitoring of loan accounts made by the
advisory Board of Banks, Commercial and Financial Frauds (ABBCFF)
constituted by the Reserve bank of India. To Copy for information to :
I. Deficiencies at the stage of sanction i. There were deficiencies in the appraisal of credit proposals. High projections of the borrowing company were not critically analyzed by the sanctioning authorities. With the result, the borrower's credit requirements were not properly assessed. There were instances were term loans were sanctioned with out insisting on the project report, cost of project and means of finance. ii. At the time of mid-term review of the projects, additional loans were sanctioned with out proper appreciation of the market conditions and the factors which led to time and cost overruns in the projects by the sanctioning authorities. iii. The sanctioning authorities have overlooked the irregularities pointed out the lower level functionaries in the borrowal accounts or in the accounts of the group companies based on stock verification reports, audit reports etc. and sanctioned the facilities. They had not taken into account the fact that the existing accounts of the borrower were irregular, audit objections not cleared, estimates inordinately inflated and vital issues either not commented upon or wrongly commented in the inspection/ audit report itself. iv. The sanctioning authorities were not given full facts about the borrowers and the projects by the officials in controlling office/ branch. This was mainly because the branch did not make proper scrutiny of the borrowing company's/ firm's antecedents and verify the claims of achievements by them. v. Contrary to the above, the sanctioning authorities had adequate facts about the unsatisfactory position of the borrowal accounts and yet facilities were sanctioned overlooking the deficiencies. vi. There were instances where the sanction itself was not justified on the basis of projections made by the borrowers and valuation of securities offered by them. vii. Sanctions were made deviating from the laid down policy on extending finance for Capital expenditure/ long term working capital. Facilities were sanctioned by the bank's Boardin violation of its own internal norms. viii. Sanctioning authorities over looked the fact at the time of take over of accounts that the borrowing company had irregular accounts with the previous banks. ix. Adhoc limits were sanctioned frequently even
if the company had regular limits and its accounts were running
irregularly. At times, such limits were sanctioned by branch/
head office level functionaries in excess of the delegated powers.
Revival packages were also sanctioned by the Regional authorities
on respect of credit limits originally sanctioned by the bank's
Head Office Committee.
i. Loans/ advances were released by the branch Officials in blatant violation of the terms conditions of the sanction laid down by the Head Office. ii. No proper monitoring of the end-use of the funds by the borrowers was noticed in a few cases. Cases of such diversion of funds in larger accounts were not reported to the Bank's board for their information and providing required direction in this matter. iii. Monitoring of the company's financial standing especially with reference to the financial indicators were not carried out effectively. iv. Undue reliance on the certificates given by Charted Accountants/ Valuers without co-relating them with other relevant procedures was noticed. For example, in the case of projects under implementation, reliance was placed on the certificates without adequate monitoring of the progress of construction through site visits. Similarly, in respect of certificates for verification of inventories, there was inadequate correlation of the figures with audited financial statements and also inadequate follow-up on deficiencies reported. In one case it came to light subsequently that the borrower company had produced forged expenditure certificates from the Charted Accountants. v. There was also lack of proper monitoring even with regard to very important terms and conditions of the term loan sanction such as tie up of funds, stipulation of Promotor's contribution etc. leading to disproportionate lending by the banks. vi. As regards to working Capital limits, failure to detect disappearance of stocks given as security has resulted in misappropriation of funds/ sale of stock and realisation of receivables without the knowledge of banks. vii. Failure to ensure adequacy of the security offered by the borrowers, especially failure to verify whether the same asset was mortgaged to another bank was also noticed. viii. Periodical reviews of accounts were not taken after the funds were lent by the banks. ix. proper assessment of the financial standing of the projects was not carried out when the bank took over the account from another bank. x. Excess drawing permitted by the branch level functionaries in borrowal accounts were not ratified by the Head Office in a routine manner with out examining the need for such permissions, at times, frequently. xi. Limits sanctioned were allowed to be interchanged indiscriminately by the branch officials with out proper authority. xii. In cases pertaining to term loans for financing projects, important terms and conditions of sanction stipulated by the Board of Directors such as induction of technical directors, constitution of audit committees and independent project monitoring committees are not taken seriously. Many a times, non compliance even at the stage of release of the final instalment of the loan sanctioned is not taken seriously. This is a very serious lacuna which cuts at the root of the principles of project management and project financing. III Suggestions to improve the system The following suggestions are made with a view to improve the system. i. In many cases diversion of funds is facilitated by opening of accounts with other banks wherein the sale proceeds of realized book debts are credited with out the knowledge of the lending bank. With a view to prevent such malpractices, the lending bank sh\ould obtain a certificate from the borrowers on a quarterly basis furnishing details of accounts opened with other banks. ii. It is noticed that the banks rely on the certificates of valuation given by the external valuers, which in some cases were subsequently found to have shown grossly inflated values. It is, there fore, suggested that the setting up of independent cells for valuation within banks themselves, which are manned by technical personnel with the right expertise is considered seriously. iii. Immediate action should be taken where the malafides/ gross negligence on the part of the dealing official are noticed. The Advisory finds that in the large majority of cases, administrative action is either not initiated well in time or not initiated at all. iv. While processing loan applications, there is no scientific application of mind by the bank officials in observance of compliance with the stipulated terms and conditions by the borrowers and as a result, certain serious default has occurred causing systemic failure of the financial sector. It is, therefore, suggested that banks should evolve a process of check listing which would enable them to take note of any deficiencies while releasing the funds to the borrowers of monitoring the end use of funds. v. There is need for building up a cadre of officials with proper educational background and training to take care of at least larger projects being financed by the banks. vi. Perhaps the single largest cause of financial
loss to the lending institutions is the fact that in respect of
project finance, disbursements are not made by the lending institution
in proportion to the funds disbursed by the promotor/ borrower.
In several cases, the promotor / borrower is unable to bring in
or raise the funds which he is required to provide in terms of
the sanction and consequently, in order to protect the investment
already made, the lending institution has to provide additional
funds not envisaged in the original proposal. The same situation
persists when there are costs over-runs, where by the exposure
of the lending institution gets increased.
>> Top >> Short Term Loans (FS) through KCC (07-04-05)
The Secretary, Sir/Madam, Sub: Short Term Loans (FS) through KCC-assigning
credit card numbers to borrowers- instructions issued. As per reference cited, the eligible PCARD Banks were advised to implement the scheme for providing ST credit/ working capital loan in farm sector. Section 7(XII) of the loan manual provides that the ST loan account would be operated through the issue of Kisan Credit Card (KCC). Further in the passbook issued at the time of loan disbursement, the card number is to be shown. As per Section 7(XIV) of the loan manual, the borrower availing ST loan through SCC should be insured against personal accidents for three years. Assigning of credit card No at the time of loan issue thus becomes necessary and therefore the following instructions are issued in this regard. 1. The KCC will contain 16 digit number, the first three digits being ‘Regional Office Code’ the second 4 digit number being ‘PCARDB/ Branch code’, the third 5 digit number ‘member code’ and the last 4 digit number be ‘serial number’ from 0001- 9999. 2. The PCARD Bank shall assign card number serially
from 0001 as shown below. 3. This number shall be shown both in the passbook and insurance proposal. 4. After assigning the number, the details of the borrower in Excel data base indicating serial number, name of borrower 16 digit number assigned and with a passport size photograph must be forwarded to Head Office in order to arrange for printing of laminated cards. On the reverse of the photograph, serial number, name of the borrower,and name of the PCARDB should be entered in English capital letters with ordinary ballpoint pen. No other data be shown on the reverse of the photograph. 5. The Head Office will issue the laminated cards within a month. 6. The agreement with the Insurance Company is being executed and the amount of premium shall be communicated within a week. 7. The PCARDBs shall take utmost care in assigning
KC Card number to borrowers and forwarding list to H.O. for
printing laminated cards. Yours faithfully, Copy to:-
>> Top >> Powers of supervisors of PCARD Banks for preparation of TER (18-4-05)
CIRCULAR NO.15/2005 Sub:- Powers of supervisors of PCARD Banks for
preparation of TER-enhancement - of limit-reg. The Board of Directors of this Bank at their meeting held on 14/03.2005 considered the decision of the conference of presidents of PCARDBs held on 03/02.2005 and by exercising the powers conferred on the Board as per Bye-law No.42 of KSCARDB, it was resolved to enhance the limit of supervisors of of PCARDBs to prepare TER on loan application to Rs.1 lakh in respect of Farm and Non-Farm sector and to Rs.2 lakhs in respect of Rural Housing. This modification will come into force with effect from the date of decision of the Board ie14/03.2005. Sd/- To
>> Top
>> Revision
of interest rate on refinance under FS,NFS, and NABARD RHS (27-4-05) CIRCULAR No.17/2005. Sub:-Revision of interest rate on refinance under
FS,NFS, and NABARD RHS- reg. NABARD in terms of their Circular cited, has revised
the rate of interest on refinance under Farm, Non-Farm and Rural
Housing Debentures in the Ist slab of Rs.50000/ from the existing
rate of 5.5% to 6.00% w.e.f.16.03.2005. Sector Debenture rate Rate on PCARDBank Borrower
rate Non-Farm Sector&NABARD RHS Yours faithfully,
>> Top
>> Short
term credit for Agricultural and Allied Activities (04-05-05) All Regional Managers/ Sir, Ref: This Office letter of even no. dated 28-03-2005 Please refer letter cited. As mentioned in the manual, we have entered into an agreement with M/s. United India Insurance Company in respect of Group Personal Accident Insurance covering KCC holders in the age group of 18 to 70 years for a period of 3 years commencing from the date of insurance. The salient features and working instructions are as in the case of SCC. The affiliated PCARDBs while sanctioning loans under KCC shall collect and remit the insurance premium @ Rs.76/- (Seventy-six) per person to the insurer’s bank account no. 1395 at the nearest Federal Bank branch by cheque twice a week (Monday & Thursday). The PCARDB shall take utmost care in assigning card number since it is not easy to alter the card number once noted in the policy. The Secretaries of the PCARDBs are requested to comply the above direction strictly.
Copy to:- 1.Administrative Officer
>> Top
>> Venture
capital Fund for dairy/poultry sectors (06-05-05)
Sub: Venture capital Fund for dairy/poultry sectors
– implementation – reg. NABARD, vide reference cited, has communicated the details of Central Sector Plan Scheme “Venture Capital Fund for dairy/poultry sectors’ announced by Govt. of India with a view to double food production by the end of X Plan period. The Board Meeting held on 20/4/2005 resolved to implement the scheme through eligible PCARDBs. The main objective of the scheme is to provide interest free loan/interest subsidy on the bank loan to the potential entrepreneurs for undertaking specified activities in the said sectors. The assistance for interest free loan and interest subsidy will be given from out of the revolving fund to be set up in NABARD. The total revolving fund assistance during the X Five Year Plan is Rs. 250 crores. The fund will be distributed among dairy and poultry activities with an overall ratio of 2:1. Eligible Activities: DAIRY SECTOR 1.Establishment of mini dairy units – 10 animal units (Buffaloes and cross-bred cows) with modern equipment for milk production – Rs. 3.00 lakhs (in non-operation flood area) 2.Purchase of milking machines/milkotesters/bulk cooling units (upto 2000 litre capacity) – Rs. 15.00 lakhs. 3.Purchase of dairy processing equipment for manufacture of milk products – Rs. 10.00 lakhs. 4.Establishment of dairy product transportation facilities and cold chain – Rs. 20.00 lakhs 5.Cold storage facilities for milk & products – Rs. 25.00 lakhs 6.Establishment of private veterinary clinics – 2.00 lakhs for mobile and Rs.1.50 lakhs for stationary clinics POULTRY SECTOR: 1.Establishing poultry breeding farms with low input technology birds and also for ducks/turkey/guinea fowl/quail/emu/ostrich etc. – Rs. 30 lakhs. 2.Establishment of feed godown, feed mixing unit, feed analytical unit – Rs.16.00 lakhs 3.Marketing of poultry products – (specialized transport vehicle, cold room, retention shed for birds etc) - Rs. 25 lakhs 4.Egg grading, packing and storage for export capacity – Rs. 80.00 lakhs 5.Retail poultry dressing unit Rs. 5.00 lakhs. 6.Egg/broiler carts for sale of poultry products – Rs. 0.10 lakhs 7.Central grower Unit (12,500 birds per batch and 4 batches/year) – Rs.20.00 lakhs Under this scheme, 50% of the project outlay will be provided as interest free loan. The beneficiaries will have to bring 10% of the project outlay as margin money and the balance amount of outlay ie., 40% would be met through bank credit. In addition, 50% of the interest charged on the bank loan will be subsidized to the borrowers who are regular in repayment. The adjustment of subsidy towards 50% of interest paid is to be claimed by Banks from the revolving fund from the 2nd year onwards on a reimbursement basis. The Banks can sanction viable, bankable projects submitted by potential entrepreneurs and submit the claim in the prescribed format to NABARD R.O. through KSCARDBank H.O. NABARD will be the nodal agency for implementation of the scheme. The State Level Review and Disbursement Committee headed by the Chief General Manager, NABARD and consisting of representatives of leading banks, Animal Husbandry and Dairy Departments will review the claims received from Banks and sanction 50% of the project outlay as interest free loan as per the guidelines. Based on the sanction of the Committee, NABARD will release the amount to the financing bank and the Bank should ensure that final disbursement is made within 7 days of release of amount from the revolving fund. NABARD will provide 90% refinance in respect of bank loan at the existing rates as applicable to Animal Husbandry investments. The Bank will release the entire loan amount in instalments depending upon the progress of implementation of the project. The Bank can charge interest as per norms on its portion of loan account and should not charge any interest on amount drawn from the revolving fund. The Bank will disburse the loan amount after it receives interest free portion from the revolving fund. It shall recover the loan amount as per instalments prescribed and pass on pro-rata portion of the amount recovered back to NABARD on yearly basis. The Bank will charge the usual interest amount on the loan portion and for the regular accounts only it will claim 50% of the interest amount charged from NABARD as subsidy. On receipt of subsidy from NABARD, the amount will be credited to the borrowers account.
It has been revealed during deliberations that mini dairy projects in the 6 Malabar Districts can be considered for financing under this Scheme. Other projects are applicable to all districts in the State. You are requested to give due publicity to this Scheme. The operational guidelines are enclosed herewith for your guidance. Yours faithfully,
>> Top
>> Lending
to PCARD banks having overdue with Central bank (14-05-05) 1. All Regional Managers. Sir, Considering the huge overdues existing both at
the PCARD bank and Apex Bank level in respect of some of the
PCARDBs in the state, it is proposed to regulate the lending
to such PCARD banks w.e.f. 1.7.2005 till the over due at the
RO level is fully cleared and the over dues at the PCARDB level
reaches to a comfortable position in the interest of the institution
as a whole. 1.PCARD Banks which are having no arrears at RO
level as on date are eligible to get the full extent of their
requirement subject to the lending eligibility norms issued. All Regional Offices and PCARDBs are requested to concentrate more on recovery for the remaining period by utilizing the services of the Nodal Officers as well as the Officers and non-Officials of the PCARD Banks to attain unrestricted, uninterrupted loan disbursement in the coming months. Anticipating full co-operation,
>> Top
>> Implementation
of the scheme for advancing working capital loan (21-05-05) P1/1411/NCDC/2004-05 All Regional Managers Secretaries of all PCARD Banks. Sir, The Board of Directors in their meeting held on 09/05/05 considered the suggestions received from the Pathanamthitta Regional Office regarding the implementation of the scheme for providing credit to small traders and resolved to incorporate the following suggestions to the loan manual for common adoption. Therefore, the loan manual on providing credit to small traders after clause 6(vi), the following new sub clause may be added namely; 6(vii) * Ration card verification and endorsement
should be made compulsorily. The implementing PCARD Banks and the Regional Offices are instructed to act according to the amended procedure. Yours faithfully, Copy to
>> Top
>> Scheme
for development/ strengthening of Agrl. Marketing Infrastructure,
grading and & standardization (02-06-05) P1/ 1835/2005-06
Sir, Ref: Ltr. No. F21/ Reforms/ TVM/ dtd. 1-03-2005 of the department of Agriculture and Co-operation The Department of Agriculture and Co-operation,
Ministry of Agriculture, Government of India, vide letter no.
16011/1/2002-M dtd. 18-02-05has notified that the State of Kerala
fulfills the requirements for the implementation of the scheme
for development/ strengthening of Agrl. Marketing Infrastructure,
grading and & standardization. This scheme has been formulated
to develop marketing infrastructure in the country to cater
to the post- harvest requirement of production and marketable
surplus of various farm products. Functional infrastructure
for collection/ assembling, drying, cleaning, grading, standardization
etc., market user common facilities in the project area like
shops/ offices, platforms for loading/ unloading, assembling
and auctioning of the produce, infrastructure for fro supply
of production inputs and need based services to the farmers,
mobile infrastructure for post- harvest operations, infrastructure
(equipments, Hardware, gadgets etc) for E-trading, market intelligence,
extension and market oriented production planning etc. are eligible
for assistance under the scheme. For KSCARDB, which is eligible
for assistance under the scheme. For KSCARDB which is eligible
for refinance under NABARD refinance, subsidy for the projects
financed under the scheme will be released through the NABARD.
The rate of subsidy shall be 25% of the capital cost of the
project subject to a maximum of Rs. 50.00 lakhs. The adjustment
of the subsidy will be back ended and 50% of the subsidy will
be released as advance and the remaining 50% on completion of
the project. Copy to: >> Top
>>
Interest on NABARD Rural Housing loans under Repairs/renovation
purpose (08-06-05) F1/IR/54484/2003 CIRCULAR NO.19/2005 Sub:- Interest on NABARD Rural Housing loans under Repairs/renovation purpose for enhanced ceiling up to Rs.3.00 lakhs – reg Ref:- This office Circular No.10/05 dated 16.03.2005 and 17/2005 dated 27.04.2005. In continuation of our Circulars cited, we may inform that the Board of Directors of the Bank at their meeting held on 06-06-2005, resolved to approve the following changes in the rate of interest in respect of Repairs/renovation under NABARD Rural Housing. Slab Loan Amount PCARDB Rate Borrower Rate The revised rate has been made applicable to all lendings w.e.f. 01.07.2005. The lending eligibility to each PCARD Bank under the sector is restricted in terms of the existing eligibility criteria already communicated. Yours faithfully, To, 1) All Regional Managers, >> Top
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Individual stay allowed by District Consumer Redressal
Forums (10-06-05) No. G1/ Act/7746/ 2001/Vol. III CIRCULAR NO. 20/2005 Sub: Individual stay allowed by District Consumer Redressal Forums- rag.
Yours faithfully, To >> Top
>>Crop
development programme of the Department of agriculture for the
year 2005-06(15-06-05) No. P1/ 1229/PH/ 2005-06 All Regional Managers Sir, The Board Meeting held on 6/6/2005 considered
the decision taken in the 86th SLBC meeting regarding implementation
of the crop development programme for Pepper & Cashew in
the state during 2005-06 and resolved to implement the same
through the PCARDBs. Under Pepper development programme, 2 components
such as rehabilitation of old and senile gardens and better
management of existing gardens are included.This scheme would
be implemented in 3 Districts viz; Idukki, Wyanadu & Kozhikode.
The Programme for rehabilitation of cashew plantation would
be included in 8 districts of the state namely, Kollam, Alappuzha,
Thrissur, Palakkad, Malappuram, Kozhikode, Kannur & Kasargodu.
The detailed physical and financial target district-wise for
both the programme,is provided as Annexure.
1. The Secretary, PCARDBs of implementing districts. * Annexure attached. A)PEPPER
B)CASHEW
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>>Repayment
period of refinance under NHB Rural Housing Scheme (17-06-05) No. OH2/NHB/ 4618/2005-06 CIRCULAR NO. 23/2005 Sub:- Repayment period of refinance under NHB Rural Housing Scheme- reg. Ref: Letter no. NHB (ND) R.6 (49)/ 664/ 2005 dated 3-05-04 of NHB. As per the existing provisions of NHB Rural Housing Scheme, refinance from NHB is repayable over a period not exceeding 15 years, based on the weighted average period of housing loans in respect of which refinance is claimed. Based on the communication of NHB as per letter no. NHB(ND) R.22 (10)2002 dated 12-07-2002, the Board of Directors of the bank resolved to choose the repayment period between 5 years and up to and inclusive of 7 years so as to avail the interest benefit of 0.25% and loan period was separately classified as up to 7 years and above 7 years and up to 15 years. Now the NHB vide letter No. NHB (ND)/ R. 6 (49) /664/2005 dated 3-05-2005 decided to reduce the maximum period of refinance assistance from 15 to 10 years w.e.f. 1-07-2005. The Board of Directors at their meeting held on 6-06-05 have considered the matter and decided to reduce the maximum repayment period of NHB housing loan from 15 to 10 years w.e.f. 1-07-2005. Hence while financing under NHB housing scheme, repayment period be fixed as up to 7 years and above 7 years to 10 years w.e.f 1-07-2005 and the monthly disbursement of NHB loans be reported on the above 2 slabs w.e.f. 1-07-2005 after getting fresh allotment if any, from this office. Yours faithfully, 1. Secretaries of all PCARDBs >> Top
>>Building
loans to PCARD Banks by KSCARD Bank- revision of rate of interests
(21-06-05) G1/ BL/ PCARDB/2005 The Chief Inspecting Officer (IW) N&S Sir, Sub: Building loans to PCARD Banks by KSCARD Bank- revision of rate of interest-reg. The Board of Directors of this Bank at their meeting held on 14-03-2005 resolved to reduce the interest rate on building loan to PCARD Banks from 12.5% to 11% and to request the Registrar of Co-operative Societies to amend clause 5 of the rules for granting building loans to PCARD Banks accordingly. The matter was taken up with the Registrar of Co-operative Societies vide letter dated 23/05/2005, amended the clause 5 of the said rules as proposed by this Bank. The Board meeting of this bank held on 6-06-2005 resolved to implement the revised rate of interest at 11% in respect of loans disbursed on or after 1-04-2005. Hence you may charge interest only at 11% on all building loans disbursed to PACRD banks by KSCARDB on or after 1-04-2005. Yours faithfully, Copy to: All Section Heads at H.O. >> Top >>SGSY-
Interest rates to be changed on group loans (22-06-05) D4/SGSY/2004-05 All Regional Managers Sir/ Madam, Sub: SGSY- Interest rates to be changed on group loans- reg. Ref: NABARD Circular no. 96/ DPD-FS/16/SGSY/2005 dated 30-05-05. On the basis of clarification sought by some
banks on the rate of interest to be charged on group loans under
SGSY, NABARD vide circular referred above clarified that the
rates of interest to be charged on group loans under SGSY may
belinked to per capita size of loans so as to mitigate the burden
on the Below Poverty Line beneficiaries on the analogy of IRDP
group loans. Yours faithfully, Copy to: 1.PA to Vice-President
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>>"Know
your Customer” norms (27-06-05) Sir/ Madam, Ref: NABARD Circular No. 82/ DOS 13/ 2005 dt. 13-05-05 1.NABARD vide Circular cited informed that the KSCARDB/PCARDBs in the country are also to adopt the “ KNOW YOUR CUSTOMER” (KYC) as in the case of Commercial banks. The KYC norms have been introduced by the RBI in order to prevent the banks being used intentionally or unintentionally by criminal elements and to help control financial frauds, identify money laundering and such other suspicious activities. 2.The Board of Directors of the Bank have considered the NABARD circular containing guide lines for application of KYC Norms in the SCARDB/ PCARDBs in their meeting held on 6-06-2005 and have resolved to adopt the same by the KSCARDB and by the affliliated PCARD Banks 3.Accordingly the following operational guide lines are issued for adoption by all the PCARDBs and all Offices of KSCARDB. a.While opening an account (when it may be applicable
to ARDBs in Kerala), the customer identification should entail
verification through an introductory reference from an existing
account holder/ member or a well known person known to the bank
or on the basis of documents provided by the customer. NABARD has fixed the following time schedule and the PCARD Banks have to scrupulously follow the same.
f.At Regional Office level, with the help loan
sub-ledger/ Mortgage bond register or with any other relevant
registers, each loan account of above 5.00 lakhs since 1-01-1990
shall be listed out and tabulated in a register. A cross-verification
with the concerned loan ledgers in PCARDB shall be done in order
to ensure that loan outstanding is less than g.Constant monitoring of loan accounts advanced on the basis of power of attorney and other mandates & also to firms, trusts etc. are to be ensured through out the loan period and a default of even one loan instalment in such cases shall be dealt with serious concerns. h.All cash transactions of Rs.50,000/- and above shall be subject to the furnishing of Permanent Account Number (PAN) the Secretary.
5.The Principal, STC, shall arrange to conduct 2-3 one day workshops for Branch Managers/ Secretaries of PCARD Banks, at least one Asst. Manager and Deputy Manager from each Regional Office on the concept of “KYC” norms and its introduction in ARD Banks The receipt of this letter shall be acknowledged with out fail by the Secretaries and Regional Managers. Yours faithfully, Copy to:
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>>Scheme
for advancing working capital loans to traders and small industrial(27-06-05) All Regional Managers/ Sir, Attention is invited to the reference cited. As mentioned in the Manual we have entered into agreement with United India Insurance Company in respect of group personal accident insurance covering farmers/ small entrepreneurs/ traders in the age group of 18-80 against the following contingencies for a period of one year commencing from the date of insurance.
The salient features and working instructions
are as in the case of SCC/KCC. The Secretaries of PCARD Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||