Ref. No. NB.DoR/64/A-1 Gen/2021-22
Circular No. NB. 83/DoR-29 /2021
30 April 2021
All State Cooperative Banks
Provision of Short Term Refinance - Special Liquidity Facility - 2
Please refer to the following circulars issued by NABARD communicating Short Term refinance policies:
i. NB.DOR/ 55 / A1.Gen/2021-22 (Circular No. /DOR – 74 /2021) dated 28 April 2021
ii. NB.DOR/ 59 / A1. (ST – OTH)/ 2021-22 (Circular No. /DOR – 76 /2021) dated 28 April 2021
2. In the wake of the COVID-19 pandemic, RBI has made available a Special Liquidity Facility - 2 (SLF-2) to NABARD for providing liquidity support to Cooperative Banks with a view to ensure unhindered flow of credit from banks to farmers to carry out their agricultural operations smoothly. The features of SLF lending are as under:
a. StCB wise quantum of refinance for sanction under this facility will be determined by NABARD considering the eligibility parameters indicated above as well as projected RLP of the bank for 2021-22 / Agricultural GLC of the previous year.
b. The interest rates on refinance will be as decided by NABARD from time to time. For the present it is 4.40% pa. The Interest is payable at half yearly rests on 01 October and 01 April. In the event of the bank repaying the entire principal amount, the interest will be payable along with principal amount.
c. StCB shall submit monthly NODC statement indicating DCCB-wise position separately for ST-Crop loans and ST(Others) by 20th of the succeeding month physically or through digital platform. It may be ensured that drawal under Special Liquidity Facility by the bank does not exceed the aggregate net NODC available under the respective category.
d. Since the SLF – 2 from RBI is for a period of one year from the date of first drawal by NABARD, it is payable within a maximum period of 1 year or as stipulated by NABARD during release of SLF.
e. All other terms and conditions will be as per our Additional ST (SAO) circular mentioned at para 1 above.
3. You may arrange to forward applications for sanction of credit limits as per the prescribed format, complete in all respects, to the concerned Regional Offices of NABARD immediately, to facilitate timely sanction of limits.
4. Please acknowledge receipt of this circular to our respective Regional Office.
(L R Ramachandran)
Chief General Manager