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Compliance of Aadhaar Linkage for Short-term Agri Loans - Interest Subvention Scheme and Prompt Repayment Incentive - Benefits
 
1.  As you are aware, in terms of provisions of Aadhar (Targeted delivery of financial and other subsidies, benefit and services) of Act 2016, it has been enabled and made mandatory to capture details of Aadhar by banks of all the beneficiaries availing short term crop loans where Interest Subvention, prompt repayment incentives, PMFBY etc schemes of the Government of India are implemented. 
 
2. We invite a reference to our circular no DoR Policy /189/190/ dated 31 July 2017 wherein the client banks were advised to make Aadhar linkage mandatory for availing short term crop loans in 2017-18 and it was also indicated therein that Banks have to ensure that Aadhar linkage with KCC has been done while claiming reimbursement of Interest Subvention (IS). 
 
3. The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India vide its letter F. No. 1- 12/2020- Credit dated 02.07.2020 (appended) has reiterated the need to capture Aadhaar number/ Aadhar Enrolment Number (AEN) for all farmers (except those from Assam, Jammu & Kashmir and Meghalaya) to avail of the benefit of Interest Subvention & Prompt Repayment Incentive against short term agricultural loans and advised us to seek confirmation of 100 percent Aadhar seeding of beneficiary accounts. We are hopeful that Aadhaar seeding has already been done for all KCC accounts for which interest subvention claims have been preferred by you.  Shortly, it is expected that the interest subvention on crop loans to individual borrowers shall be made as direct transfer using Aadhar authentication and linked banked accounts.
 
4. Further, it has been decided by the GoI that IS and PRI benefit shall not be available against those accounts where Aadhaar number/AEN has not been captured. 
 
5. Those KCC accounts which are yet to be Aadhaar seeded, if any, may be done on a priority basis and in any case before 31 July 2020 and provide us a confirmation certificate. A similar certificate of compliance by CCBs may also be collected and forwarded to us for record. Any deviation from the stipulated condition shall be viewed seriously. 
 
6. Henceforth, all banks (except those in Assam, Jammu & Kashmir and Meghalaya) are advised to provide a certificate along with the audited claims whilst seeking IS and PRI reimbursement that the Aadhar number/ AEN of all farmers for whom they are claiming reimbursement of IS and PRI has been captured and is available with the bank and that there is no case of claim of reimbursement where Aadhaar/AEN is not available (except for the three exempted States). Claims for reimbursement will not be considered unless supported with a certification in this regard from the banks. This will be verified during inspection of the bank undertaken by NABARD.
 
7. Further, all audit teams carrying out statutory audit of banks/branches may be asked to  verify compliance with regard to mandatory capturing of Aadhaar/AEN for all beneficiaries availing benefit of IS and PRI.
 
8. We request you to kindly submit the confirmation certificate that all the KCC accounts in your bank have been linked to the Aadhar number of the borrower, to our Regional Office with a copy to us on or before 07 August 2020. This may be treated as most important and urgent.