Circulars

Financing of Primary Weavers Cooperative Societies (PWCS) by Scheduled Commercial Banks - Refinance Policy for financial year 2022-23

No.NB.DoR-Policy(Weavers)/ 673 /A-7(P)/2022-23

Circular EC No. 164 / Refinance DoR- 56 / 2022

08 August 2022

The Chairman

Scheduled Commercial Banks

Dear Sir

Financing of Primary Weavers Cooperative Societies (PWCS) by Scheduled Commercial Banks - Refinance Policy for financial year 2022-23

Please refer to our Policy Circular No.164/DoR-51/2020-21 dated 11 June 2020 read with Circular No.78/DoR-24/2020-21 dated 23 April 2014 communicating NABARD's policy for the financial year 2020-21 for financing Primary Weavers Cooperative Societies.

2. It has been decided to broadly continue the same policy for 2022-23 also. The eligibility criteria prescribed for the year 2022-23 are as under :

(i) Compliance with minimum CRAR norm of 11.50% (as per Basel III) as on 31.03.2021.

(ii) Net NPAs not exceeding 6% of net loans and advances outstanding as on 31.03.2021. The NPA position will be reckoned for the Bank as a whole.

(iii) The bank should be in Net profit in 2020-21.

(iv) In case of improvement or deterioration in the above parameters as on 31.03.2022, the same will be reckoned for eligibility of refinance.

3. Interest rate on NABARD's refinance under this line of credit is at present 6.80% p.a., payable at quarterly rests on the first day of each quarter i.e. on 01 July, 01 October, 01 January and 01 April every year, or on repayment of the entire principal amount. It is, however, subject to revision by NABARD from time to time. The parameters, terms and conditions and quantum of refinance as indicated in our Circular No.78/DoR-24/2014 dated 23 April 2014 may also undergo changes accordingly.

4. All other terms and conditions detailed in Circular No.78/DoR-24/2014 dated 23 April 2014 will remain unchanged.

5. Kindly acknowledge receipt of the same.

Faithfully yours

(Vivek Krishna Sinha)

Chief General Manager

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