No.NB.DoR-Policy(Weavers)/ 676 /A-7(P)/2022-23
Circular EC No.167/ Refinance DoR-59/2022
08 August 2022
All State Co-operative Banks
Short Term Credit Limits to StCBs/CCBs for Financing the Working Capital requirements of State Handloom Development Corporations (SHDC)s - Policy for the year 2022-2
Please refer to our Circular No. 168/DoR-55/2020 dated 11 June 2020 read with Circular No.76/DoR-26/2014 dated 23 April 2014 communicating NABARD's policy for F. Y. 2020-21 for provision of short-term credit limits to State Cooperative Banks/Central Cooperative Banks for financing working capital requirements of State Handloom Development Corporations under Sec 21(1) of NABARD Act, 1981. It has been decided to continue broadly with the same policy for the year 2022-23. The eligibility criteria pertaining to this policy for the current financial year is furnished in Annexure.
2. 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.76/DoR-26/2014 dated 23 April 2014 may also undergo changes accordingly.
3. Kindly acknowledge receipt of the same
(Vivek Krishna Sinha)
Chief General Manager
Encl : As above
Provision of Short Term Credit Limits to StCBs/CCBs for Financing the Working Capital requirements of State Handloom Development Corporations (SHDCs) - Policy for the year 2022-23
1. Eligibility Criteria for StCBs/CCBs:
Audit of StCB / CCBs for the year 2020-21 should have been completed and the relative audit reports along with financial statements should have been received by the concerned RO of NABARD. Further, the audit of State Cooperative Banks as on 31 March 2022 should be completed by 30 September 2022 and the position as on 31 March 2022 will be reckoned for sanction and drawal of credit limits on or after 01 October 2022.
(b) CRAR norms
All licensed StCBs (Scheduled / Non Scheduled) and CCBs complying with CRAR conditions mentioned below would be eligible for refinance under ST (Weavers)
1. StCBs / CCBs having CRAR of 9% and above only as on 31.03.2021, will be eligible.
2. In case of StCBs with CRAR of 9% and above but individual CCBs with less than 9%, no credit limit will be available on behalf of such CCBs.
3. StCB with CRAR less than 9% would not be eligible for fresh refinance.
Limits to non-scheduled StCBs
Non-scheduled StCBs which fulfill the CRAR criteria as provided above, will be eligible for sanction of credit limits against Government guarantee under Sec. 21(3)(a) of NABARD Act, 1981 or pledge of Govt. / approved securities under Sec. 21(2)(i) of Act ibid and / or pledge of FDRs of Scheduled Banks under Sec. 33 of Act ibid.
(c) NPA Norms
Net NPAs of the StCB not to exceed 12% as on 31.03.2021. However, with a view to increase the credit flow in the North Eastern Region, Jammu and Kashmir, Sikkim, Andaman and Nicobar Islands, Himachal Pradesh and Uttarakhand; the ceiling of net NPA norm criterion in these States will be 15% as on 31.03.2021. The StCBs having net NPA percentage above the prescribed rate will not be eligible for sanction of ST (Weavers) limit.
All other terms and conditions detailed in Circular No.76/DoR-26/2014 dated 23 April 2014 will remain the same.