BCC: BR: 101:275

11.09.2009

ISSUED BY ASCROM CELL

BARODA CORPORATE CENTRE, MUMBAI
CIRCULAR TO ALL BRANCHES/OFFICES

IN INDIA
Sub. File ADV 14

Dear Sir,
RE: - Prudential Treatment as on 30.09.2009 of Accounts of other
farmers eligible under Agricultural Debt Waiver and Debt Relief
Scheme, 2008 in ASCROM System.
Under the Agricultural Debt Waiver and Debt Relief Scheme, 2008 in the
case of other farmers, the farmers will be given a rebate of 25% of the
eligible amount by the Government by credit to his account, provided the
farmer pays the balance of
75% of the eligible amount. The scheme
initially provided for payment of share of 75% by other farmers in three
installments. The last dates of payment of the three installments were
September 30, 2008; March 31, 2009 and June 30, 2009, respectively.
Since, there was no grace period allowed for the installments due on June
30, 2009 the Branches were advised during the Quarterly Limited Review of
Accounts for June, 2009 to make these accounts NPA if the eligible farmer
had not paid his entire share.
As the asset classification of these accounts was to be determined with
respect of original date of sanction branches were also advised to go to
individual account one by one and make these accounts NPA in the ASCROM
system as if the account has not been treated as performing in the
interregnum based on the undertaking.
Now,
Reserve
Bank
of
India
vide
circular
no.DBOD:No.BP.BC.35/21.04.048/2009-10 Dated August 31, 2009 has
advised as under.
Where the farmers covered under the Debt Relief Scheme have given the
undertaking, agreeing to pay their share under the OTS , their relevant
accounts may be treated as standard/performing provided
a. Adequate provision is made by the banks for the loss in
present value (PV) terms for all the receivables due from the
borrowers.
b. Such farmers pay their share of the settlement latest by
the revised last date .i.e. December 31,2009
As the last date for payment has been shifted to December 31, 2009 we are
receiving the queries from the branches whether to upgrade these accounts
in ASCROM system? If so, for up gradation of these accounts to
standard/performing category Branches will have to go to individual account

and upgrade these accounts one by one using MOC option, which means a lot
of manual work.
Furthermore, if eligible farmer do not pay their share by December 31,
2009 these accounts will have to be made again NPA by going account to
account in the system.
At the backdrop of the above it has been decided to keep these accounts of
other farmer as NPA in ASCROM system, as existing, if his share by the
other farmer is not deposited by 30.09.2009. However, the accounts to
be made standard if his share/overdue has been deposited or is deposited
by 30.09.2009. Any adjustment, if required, for balance sheet purpose shall
be made at Corporate Office level at the time of finalization of accounts.
Therefore, please initiate the following action points:
1. Do not upgrade to Standard category the accounts of eligible
farmers under Debt Relief in ASCROM system if the farmer has not
deposited his entire share till 30.09.2009.
2. Remove the Special Category Code marking of 95 or 82 in September,
09 data base given in earlier months to borrowers eligible under Debt
Waiver. This illustratively would be the case of small and marginal
farmers where the entire eligible amount has been waived and
already credited to the respective accounts.
3. Remove the Special Category Code marking of 95 or 82 in September,
09 data base given in earlier months to borrowers eligible under Debt
Relief where eligible amount under debt relief has been credited
to the respective account. This illustratively would be the case of
other farmers where the entire eligible amount has already been
credited to the respective account consequent upon the deposit of his
entire share as per the scheme by the other farmer.
4. Please doubly ensure that only the accounts eligible under ADWDRS
08 for Debt Relief of other farmer where the farmer has not yet
deposited his entire share remain marked with Special Category 95 or
82 as on 30.09.2009 in ASCROM System.

Please confirm the compliance to your regional office.

Yours faithfully,

(R.K.Bansal)
General Manager
(Recovery, Legal and ASCROM)