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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
>>
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 Banks are requested to comply the above directions strictly and to remit the premium in respect of loans already issued under the scheme immediately and the Regional Managers are requested to furnish a report in this regard with in 7 days. Yours faithfully, Copy to: 1.PA to President/ Vice-President
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>>Vehicle
loan to PCARDBs by KSCARDB amendment of rules (10-07-05) Sir, Ref: 1. Letter no CLT (2) 11784/05 dt.1-06-05
from the RCS Rule 3: Limit of assistance:- The maximum amount
of vehicle loan that will be sanctioned under these rules shall
be limited to 75% of the actual price of the vehicle or Rule 6: Rate of Interest and period of repayment: Further, the Board of Directors of the Bank at their meeting held on 28/06/2005 resolved to implement the revised rate of interest with effect from 01/04/2005. Hence you are requested to charge interest only at 11% on all vehicle loan disbursed to PCARD banks by KSCARD Bank on or after 01/04/2005. Yours faithfully, Copy to:
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>>Cattle
Insurance Scheme (13-07-05) P2/ 23107/ Vol. II/ 90-91 1. All Regional Managers. Sir/ Madam, Sub: Cattle Insurance Scheme- Master Policy agreement
details communicated. As per reference letter no.2 referred above,
M/s. United India Insurance Co. has renewed the Cattle Insurance
Master Policy for a further period of 3 years up to Yours faithfully,
The Divisional Manager, >> Top
>>Strategies
for NPA Management-Revision in norms-Communications (15-07-05) No.R2/NPA/2002-03 1.All Regional Managers Sir, Ref:- 1. This office letter No.A1/8535/96-97
dt.21.3.98. Detailed guidelines /directions have been issued vide reference cited regarding classification of assets, income recognition, provision to be made and the maintenance of registers for the same. Now NABARD, vide letter under reference 3rd communicated some changes in prudential norms for adoption in SCARDBs/PCARDBs. The Board of Directors of the Bank at their meeting held on 28-6-2005 resolved to implement the new provisioning norms in our banks w.e.f 31/3/2005. The revised norms to be followed w.e.f 31-3-2005 is given below: I.Classification of Assets (Revised) Revised- b.Standard Assets (ST Loan) Existing - Revised- c. Non agricultural purpose (LT) Existing - Provisioning Standard Assets: Revised- Provisioning:
Provisioning:A general provision of 10% of total outstanding is required to be made against all assets classified as sub-standard. Revised- Provisioning: III. Doubtful Assets: Provisioning: Revised- Provisioning:
Provisioning: Revised- Provisioning:
Additional provision due to the implementation
of revised norms may be made in a phased manner starting from
31/3/2005 as noted, All PCARDBs and Regional Offices are requested to classify the assets based on norms now communicated and make necessary provisions as per the revised norms. Necessary modification may also be made in the register maintained for this purpose. The CIOs are requested to verify and ensure that the instructions contained in this letter are followed/complied by all PCARDBs and Regional Offices. The PCARDBs are also requested to submit the sector wise NPA details in the prescribed Proforma as on 31/3/2005 on the above lines at the earliest.
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>>Swarojgar
Credit Card scheme under Non- Farm sector (SCC)
(15-07-05)
D1/SCC/2003-2004 The Secretaries of all PCARDBs. Sir/Madam, Sub:- Swarojgar Credit Card scheme under Non- Farm sector (SCC)- repayment of Working capital and block capital portion – clarifications issued. Ref:- i) This office letter of even no. dated
06-07-2004 and 21-07-2004. 1. The repayment of block capital and working capital sanctioned under SCC scheme has been decided by this Bank, as per the advise contained in the NAB ‘ communication referred as ii) above. As per which , it was advised vide clause 7 (a), 8(d), 10 (a) & (c) and 17 (b),of the SCC loan manual that the Working capital portion are to be renewed every year during the 5 year period of SCC and that the Block capital portion is considered as a term loan to be re paid in annual equated instalments as in the case of composite loan. 2. But NABARD vide their letter referred to as iii) above have informed that the refinance under SCC advances will be treated as under composite loan scheme (CLS) and the terms applicable to CLS are ‘Mutatis Mutandis’ applicable to SCC advances also. We have requested NABARD to reconsider this stand
as the lendings have progressed to a considerable level and
therefore it is difficult to reverse the repayment pattern already
decided based on their earlier communication. However, NABARD
has allowed our refinance application only on submitting the
repayment schedule as per their revised communication. a) The block capital portion of the loans under
SCC shall be recovered in 10 equated half year instalments both
at PCARDB and Reg.Office level – At Regional Office if
the first demand period is over by this time the same shall
be preferred immediately and adjusted w.e.f. the date of demand. Yours faithfully, Copy to: >> Top
>>S.T.Credit
(F.S.) through issue of KCC for the Co-operative year 2005-06
(05-08-05) P1/5249/STR/Vol.II/2004-05 The Regional Manager, Sir, Sub:- S.T.Credit (F.S.) through issue of KCC for the Co-operative year 2005-06 implementation permitted inanticipation of credit limit sanction. Ref:- 1.Board Resolution dated 28/07/05 of the
Meenachil PCARD Bank. The application for sanction of credit limit under S.T.(F.S.) through the issue of KCC of the eligible PCARD Banks are being considered by this Bank for recommendation of the same to NABARD. In the meanwhile the Meenachil PCARD Bank as per the resolution referred to above and certain other PCARD Banks have requested for the continuation of the ST (F.S.) credit scheme pending credit limit sanction from NABARD. The request has been considered and is decided to allow the following eligible PCARD Banks a tentative programme given against each for the co-operative year 2005-06 subject to the ratification by the next Board meeting. The programme is allowed subject to condition that under no circumstances the PCARD Banks exceed the lending target and that the programme will be withdrawn in case NABARD does not allow credit limit for any PCARD Bank. 1.Kottayam 150
Yours faithfully, Copy to:
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>>G.L.Scheme- maximum borrowing limit(12-08-05) No. P1/ GL/04-05(Vol.III) 1.The Secretaries of all PCARD Banks Sir/Madam, Sub: G.L.Scheme- maximum borrowing limit- amount to be advanced per gram of gold and pattern of interest rate- revised-reg.
I.The maximum amount that can be granted to an individual (IMBP) on the security of gold is enhanced to Rs.2 lakhs from Rs.1 lakh. II.The amount that can be advanced per gram of 22 ct. gold is revised by fixing the floor price of 1 gram of 22 ct. gold at Rs.500/- The maximum loan amount shall be a) 90% of the floor price for 3 months period
ie: Rs450/gm. The enhancement of the floor price is subject to the following conditions. i)The floor price now fixed would be reviewed if the market price per 1 gm. Of gold exceeds Rs.610/- or come below Rs.530/- ii)The PCARDBs shall realize the loan by disposing the pledged gold within the period laid down in the G.L. manual. Under no circumstances shall it exceed 3 months after due date. iii) Due consideration is to be given to the purity of gold while determining the amount of loan. iv) Full responsibility is vested with the joint custodians and sanctioning authority. III The rate of interest will be based only on the amount of the loan advanced which has been decided as given below.
The PCARD Banks who are yet to start implementation and those lagging behind are requested to make use of the opportunity due to relaxed lending norms to the maximum extend. Yours faithfully, Copy to: >> Top
>>NHB Rural Housing Scheme (18-08-05) No.OH2/NHB/Int/2005-06 All Regional Managers Sir,
Ref: Letter no. NHB (ND) R6 (50) 2005 dated 21-7-2005
received from National Housing bank. As per revised communication, the period of debentures have been reduced from 7 years to 5 five years in the first category and from 7 to 15 years to above 5 years and up to 10 years in the second slab and the prevailing interest of the respective slab were adopted with out any change. Accordingly, the modified rate of interest linked with reduced loan period w.e.f. 01/07/2005 are communicated for implementation.
Yours faithfully, Copy to. >> Top
>> Kisan Credit Card(KCC) under NCDC line of credit (19-08-05) P1/STR-NCDC/3678/2005-06 All Regional Managers/ Sir/Madam, Sub:- Kisan Credit Card(KCC) under NCDC line of credit—implementation through PCARD Banks which are ineligible to finance under NABARD refinance scheme. Ref: (i) Board decision dated: 10-08-05 The Bank has been implementing the Short Term Credit (F.S.) through 11 eligible PCARD Banks through KCC under NABARD refinance scheme, since March 2005. The loan manual containing guidelines for implementation was communicated to all PCARDBs/Regional Offices as per letter reference (ii) above. The Bank has requested NABARD to extend this facility to all the PCARD Banks by relaxing the eligibility norms in this respect. NABARD has not so far informed us any decision on our request. The Board of directors, in their meeting held on 10-08-2005, considered the request of certain PCARD Banks to allow them to implement the S.T. credit (through KCC) and have resolved to allow the remaining PCARD Banks for advancing S.T. credit (using NCDC) funds to their member farmers who are not in arrears and have an operating Long Term loan account under farm sector (scheme). A few change in the loan manual have also been approved by the Board as detailed below which are applicable to S.T. (F.S.) credit under NCDC line of credit. (i) Clause 1-Introduction :deleted. (ii) Clause 4- Eligible PCARD Banks (iii) Clause 9-Rate of interest
(iv) Clause 11:Reporting system (v) Clause 16 (iii) Deleted. The PCARD Banks and Regional Offices can now start advancing S.T. loans to their Long Term agricultural borrowers so that they can achieve the allotted target as appended by the end of February 2006.
(i) There will be two lines of credit under S.T.(F.S.) ie, the PCARD Banks, which are eligible to finance under NABARD scheme will continue to implement that scheme. The remaining PCARD Banks will implement the NCDC line of credit. Once they become eligible they may switch over to NABARD refinance scheme with prior approval from the Head Office. (ii) The rates of interest both to PCARD Banks and ultimate borrower are different in two schemes.
(iv) All S.T. credit (F.S.) are to be issued through KCC only. The laminated cards will be issued by the Head Office. The PCARD Banks should follow the procedure as advised in H.O.lr.no.P1/KCC/7357/2004-05 dated:07/04/2005. A copy of this letter is enclosed for ready reference.
(vi) The Regional Managers shall arrange meetings/ discussions in each PCARD Bank , so that the staff members of the PCARD Bank shall read and discuss each clause of the loan manual and clear doubts if any.
The receipt of this letter shall be acknowledged by the PCARD Banks and the Regional Offices. Encl: (i) PCARDB wise lending programme Copy to:
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>> Financing of Second hand vehicles with NCDC fund (27-08-05) F3/ NCDC-SHV/2005-06 All Regional Managres, Sir, Sub: Financing of Second hand vehicles with NCDC fund- reg. The President of the Bank in the last General body Meeting has informed the financing of Second hand vehicles with NCDC fund through our Primary banks. The Board of directors of the bank in their meeting held on 10-08-2005 has also resolved to implement the scheme. Accordingly, we are forwarding herewith the rules for financing second hand vehicles through PCARD banks. The monthly statement in respect of the same should be forwarded separately. The computer code will be informed shortly. Yours faithfully, Copy to:
In exercise of the powers conferred under section 8 clause (e)and (h,A) of the Kerala State Co-operative agricultural and Rural Development Banks Act and Bye-law 42 of the Bank, the Board of directors of the Bank hereby, make the following Loan Rules. Eligible Borrowers: 1.1 Individuals, group of Individuals including
partnership/ proprietary firms and 2.0 The Borrowers should be preferably from rural/semi
urban areas and should utilize 3.0 The borrower or his employer should possess a valid driving license. 4.0 The loans under second hand vehicle will be limited to one vehicle only. Nature of assistance/ vehicle 5.0 Transport vehicles including light motor vehicles,
auto rickshaws, two wheelers, water 6.0 The loan disbursement under the scheme should be made directly to the vendor. Loan amount and margin 7.0 The loan assistance would be available for acquisition of one vehicle not more than 3 years old, subject to a maximum ceiling of Rs.5 lakhs per borrower. Margin 8.0 A margin of 25% of the purchase price of the vehcle will have to be provided by the borrower. Share linking 9.0 The share linking of the PCARDs under the scheme will be 1% of the loan amount and there will not be any share linking between PCARDBs and Central bank. Appraisal/ valuation 10.0 Appraisal of the loan application must be done jointly by any of the following Officers- Agricultural officer, Asst. Secretary/ Branch Manager and Supervisor. 11.0 Valuation of the vehicle can also be done by the PCARDBs on straight line depreciation method by deducting 20% of the original value for the first year and 10% each for the subsequent years. Repayment 12.0 The maximum repayment period for the second hand vehicle must be limited to 48 months in monthly equated instalments. Penalty on default 13.0 In case of default 2.5 % interest will be
charged on overdue instalment including Action of default 14.0 PCARD Bank should take immediate steps to foreclose the loan amount and realise the loan amount in lump with interest in case of default of 3 instalments. Rate of Interest 15.0 The rate of interest at PCARDB level to the ultimate borrower level is as follows:
Security 16.0 Primary security- Hypothecation of the vehicle to be acquired out of the loan amount
17.0 Hypothecation of land valued 50% of the loan amount.
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>> Financing of Jatropha plantation- implementation (08-09-05) P1/3282/JAP/2005-06 All Regional Mangers Sir, Sub: Financing of Jatropha plantation- implementation permitted-reg: Ref: NABARD Circular No. 126/DPD-FS.23/2005 dt.1-07-2005. The liquid fuels coming from biological raw materials known as bio-fuels, have proved to be acceptable substitutes for fossil fuel. Bio-fuels known as Ethanol and Bio-diesel are gaining wide acceptance as solution to environmental problems, energy security, reducing imports, generating rural employment and and improving agricultural economy. Among the raw materials used for bio-diesel production, Jatropha is prominent and is considered the best alternative for Bio-diesel production. Development of Jatropha has been focus by the Planning Commission, Govt. Of India due to its multiple advantage like wide adoptability, drought tolerance, high oil content and Medicinal value over other species. The Govt. Of India has contemplated to raise 4 lakh ha. of Jatropha plantation by the end of the X th five year plan. NABARD vide reference cited has developed Model Bankable Projects with 3 different types of planting materials as mentioned below and the detailed scheme is enclosed here with for your reference. Model A- Clonal Model - Unit Cost – Rs.18,000/ha Model B- Seedling Model- Unit Cost - Rs.15,000/ha Model C- Dibbling Model- Unit Cost - Rs.11,650/ha In Kerala planting of Jatropha can be taken up in less productive, degraded soil or wastelands under rainfed conditions which are suitable for Jatropha cultivation in all districts especially Idukki, Palakkad, Malappuram, Kannur and Kasargodu districts. The Board of Directors of this Bank in their meeting held on 10-08-05 have considered the new plantation scheme of Jatropha cultivation on a commercial basis and resolved to implement the scheme through all eligible PCARD banks. The cost proposed is indicative and the repayment period of all models is 8 years, with interest deferment for 3 years. 10% of the unit cost is reckoned towards margin money and the rest, bank loan. However the unit cost for Jatropha under Kerala conditions has been reworked out and forwarded to NABARD for their approval. Till the approval is received, the PCARDBs where the scope exists, may finance Jatropha plantation as per approved unit cost communicated. The Regional Managers are requested to discuss the matter in the ensuing Regional conference so that eligible borrowers can be identified and finance provided. NABARD refinance will be available as per the usual terms and conditions applicable to waste land development scheme and the progress statement may be forwarded under ARF. The Computer codes will be informed shortly. Please keep the Head Office informed about the development in the matter.
General Manager Encl: As above Copy to :
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>> Capital Investment Subsidy Schemed-Organic Farming (08-09-05) P1/3044/NPOF/ 2005-06 All Regional Managers Sir, Sub: Capital Investment Subsidy Scheme to finance Commercial production units of Organic Farming- implementation permitted-reg Ref: NBARD Circular No. 42/ICD-9/ 2004-05. In order to arrest deterioration of soil health,
emphasis is given to promote organic farming which is the holistic
production management system based on the basic principle As per scheme, back ended investment subsidy up
to 25% of the project cosr would be provided to entrepreneurs
who avail bank finance for setting up of organic input production
units. The subsidy will be administered by NABARD and would be
released through banks to the beneficiaries for the setting up
of The project outlay, subsidy component and other features for establishing modelprojects under Bio-fertilizer units, Vermiculture hatcheries and fruit nad vegetable waste compost units are as follows:-
NABARD re-finance @ 90% of the finance including subsidy portion is available under project financing. All the eligible PCARD Banks can consider to take up financing under the scheme with prior sanction from NABARD. The operational guidelines are enclosed here with and the regional managers are requested to transmit the details of the scheme to the PCARDBs in their respective regions and the progress in implementation may be intimated to the Head Office. Yours faithfully, Copy to: >> Top
>> Gold Loan Scheme/increase interest margin(17-10-05) P1/GL/2004-05 Vol III 27-10-2005 All Regional Managers Secretaries of all PCARD Banks Sir/ Madam, Sub: Gold Loan Scheme- request from certain PCARD Banks for monthly Reimbursement and to increase interest margin- Board decision communicated. Certain PCARD Banks have represented that the interest margin availability on Gold loan especially in the first slab is not remunerative and requires consideration. The Board of Directors in their meeting held on
24-10-05 considered the issue and has resolved to reduce the lending
rate to PCARD Banks on Gold loan up to and including Rs.25,000/-
from 7.75% to 7.5%. This revised rate will come to effect on By this revision, the interest income of PCARD Banks
will increase to a considerable extent as majority of Gold loans
carry the least interest rate. Yours faithfully,
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>> Rules for Governing the Sanction of Loans (24-10-05) RULES FOR GOVERNING THE SANCTION OF LOANS FOR
THE PURCHASE OF CONSUMER DURABLES IMPLEMENTED THROUGH ELIGIBLE
PCARDBS (APPROVED BY THE BOARD OF DIRECTORS IN THEIR MEETING HELD
ON24-10-2005) 1.Title: 2.Purpose: Loans should be granted by the bank for the purchase of new consumer durables and not for second hand articles. 3.Eligible borrowers: The applicant should be:- 4.Maximum loan amount: The maximum amount permissible shall be Rs.1.00.000/- or 90% of the value of the articles to be purchased, which ever is less. 5.Security: c)On the surety of National Savings Certificate
(NSC): The loan can also be issued on the surety of NSC. The period
of which is at least equal or more than the loan period. The loan
amount is limited to 80% of the matured 6.Loan sanctioning and delegation of power: Loan sanction under consumer durable and delegation of powers are vested with the Board of Directors of the concerned PCARDBs. 7.Share linking: The borrower must be ‘A’ or ‘B’ class members and the share linking between the borrower and the PCARDB is not insisted at present. There will not be any share linking between PCARDB and Central Bank. 8.Disbursement of loan amount : Loan amount under the scheme shall be given directly to the dealer after taking possession of the articles. The payment shall be made by Cheque /Cash after due verification of the assets purchased. 9.Appraisal / Valuations : The appraisal/valuation of the loan application must be done by any two of the officials but not below the rank of Junior supervision and the assets acquired out of loan amount must be verified periodically. 10.Rate of Interest : The rate of interest on consumer durable loans will be decided and advised by the Board of the Apex Bank from time to time. For the time being the following rate of interest will be applicable.
11.Repayment : The maximum repayment period of the loans must be limited to 36 months in monthly equal instalment. Interest must be calculated on diminishing balance method. 12.Penalty on default : In case of default 2.5 % penal interest will be charged on overdue instalment including interest till the dues are fully cleared. 13.Action on default : The PCARDB should take immediate steps to foreclose the loan amount and realize the loan amount with interest in lump in case of default of 3 instalments. 14.Insurance : The assets acquired out of the loan amount must be insured against fire and theft on the day of purchase for the full value of the article. 15.Reporting System : The monthly statement on disbursement of loan under the scheme should be reported separately before 10th of succeeding month in the prescribed form annexed. In addition the Agricultural Officer shall submit a report on a monthly bases on the implementation of the scheme through the Regional Office with the specific remarks of ADO. 16.The Board of Directors of the KSCARDBank shall
have the power/right to alter add of amend any or all the provision
of these rules at any time.
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>> Good Pay Master Scheme 2006 (28-10-05) NoR2/Pay- Master/2005-06 All Regional Managers, Sir, Sub: Good Pay Master Scheme 2006- Implementation-reg. In the Annual General body meeting of the Bank
held on 29-06-2005 the President of the bank has proposed the
introduction of a new scheme to the benefit of farmers viz., “Good
Pay Master Scheme”, 2006 allowing incentives to prompt repayers
of PCARDBs under Farm sector loans. The intention of the scheme
is to provide an incentive to inculcate the prompt repayment habit
among the loanees of the PCARDs.
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>> Disaster Recovery Systems and Business Continuity Planning (28-10-05) Ref: C1/DRS&BCP/005015/05-06 Date:
Sub: Disaster Recovery Systems and Business Continuity Planning- action suggested- reg: NABARD, Thiruvanathapuram vide their Letter No. (Kerala)/IDD/4826/B-11/ 2005 -06 dated 23-9-2005 has pointed out that in the recent past, different parts of the country has been experiencing natural disasters, and the disruption of normal life due to the fury of nature has necessitated the need for efficient and effective back up systems to care of any contingency that may arise due to it in the financial institutions that have automated its operations. A systematic and logical method has to be evolved,
so as to keep our valuable data safe and secure and to recover
in an unlikely event of such a scenario, so as to be back in business
at the shortest possible time without causing hardship to our
esteemed customers. The present policy of taking Data Back up
and storing it in the same premises is not adequate in case of
a natural calamity. 1.PCARD Bank Level: 3.Head Office Level: All the controlling officers at different levels shall ensure that the physical backup CDs shall be properly labeled showing date, site name, month etc with CD marking pen in the CD itself and not in the cover etc. In order to have a proper check on the data backup system, Backup registers in the prescribed format has to be retained at all levels and updated signed by the controlling officers promptly. The above direction will come into effect immediately and a compliance report shall be sent by the 15th November 2005 positively. The CIO and the Regional Manager shall verify the Data Backup Register during their periodical inspection of RO’s and PCARDBs respectively for ensuring the compliance at all levels.
Copy to:
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>> Computerization- further field level training(14-12-05) Ref: C1/ CTC- STC/2001-02 To Sir, Sub: Computerization- further field level training in CAS to be imparted to staff who have completed training at STC- reg. Ref 1. Decision of the Board meeting dated 6-06-2005
Hence Regional Managers are directed to depute the trained staff to attend to the software support work of Regional Offices and Primary Banks, with out affecting the normal office duties. The deputed staff are directed to submit a monthly work diary showing date, place of visit and the nature of work done and the same shall be forwarded to this office with the remarks of the Regional Manager so as to reach before the 5th of every succeeding month. Yours faithfully, General Manager Copy to:
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>> Computerization- CAS support activities-recruitment of SAs (15-12-05) Ref. C1/TSS/PCARDB/ 04-05 To The Secretaries of all PCARD Banks Sir, Sub:-Computerization- CAS support activities- Urgent need for recruitment of System Administrators by the PCARDBs- reg. Ref: 1. This Office Lr. Even nos. 25/2000 dt. 16/2004,
08-09-00 & 01-07-2004. Now, most of the PCARD Banks have computerized their Banking operations and are enjoying the benefits of the same, it is high time that the remaining Banks may also recruit own System Administrators for the smooth functioning of the computerization programme either on contract basis or permanently by observing usual formalities. The Board of Directors of the bank at their meeting held on 24-11-2005, has considered the situation in detail and has resolved to advise all PCARD Banks “to recruit Technical Personnel with a minimum qualification of PGDCA, (preferably MCA) with adequate exposure to Visual Basic and Oracle, as System Administrators by the PCARDBs at the earliest”. Please note that the services of the System Administrators of the Apex Bank may not be available to the PCARDBs for an indefinite period. Hence steps may be taken to recruit the System Administrators at the earliest. Yours faithfully, General Manager Copy to. 1. All RMs for information and necessary follow
up action
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