No.NB.DoR-Policy(Weavers)/ 678 /A-7(P)/2022-23

Circular EC No.169/ Refinance DoR- 61/2022

08 August 2022

Chairman

All State Co-operative Banks

Dear Sir

Provision of Short term credit limits to RRBs under Section 21(1)(iv)&(v) read with Section 21(4) of NABARD Act,1981 for financing working capital and marketing requirements of Individual weavers / Handloom Weaver Groups (HWGs) / Master Weavers (MWs), weaver members of defunct/non working weaver societies, Mutually aided Cooperative Societies, Societies outside the Cooperative folds and Producer Group Companies by NABARD - Policy for the year 2022-23

Please refer to our Policy Circular No. 167/DoR-54/2020 dated 11 June 2020 read with Circular No.75/DoR-25/2014 dated 23 April 2014 communicating NABARD's policy for F.Y. 2020-21 for provision of short term credit limit to Regional Rural Banks for financing working capital and marketing requirements of individual weavers / Handloom Weaver Groups (HWGs)/ Master Weavers, weaver members of defunct/ non-working weaver societies, Mutually aided Cooperative Societies, Societies outside the Cooperative folds and Producer Group Companies.

2. It has been decided to broadly, continue the same policy during the year 2022-23. The eligibility criteria pertaining to the policy for current financial year is furnished in the Annexure.

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 terms and conditions and quantum of refinance as indicated in our Circular No.75/DoR-25/2014 dated 23 April 2014 may also undergo changes accordingly.

4. Kindly acknowledge receipt of the same.

Yours faithfully

(Vivek Krishna Sinha)

Chief General Manager

Encl : As above

Annexure

Provision of Short term credit limits by NABARD to RRBs for the year 2022-23 for financing working capital and marketing requirements of Individual weavers / Handloom Weaver Groups (HWGs)/Master Weavers (MWs), weaver members of defunct/ non-working weaver societies, Mutually aided Cooperative Societies, Societies outside the Cooperative folds and Producer Group Companies

1. Eligibility Criteria for RRBs

Audit of RRBs should have been completed for the year 2020-21 and the relative audit reports together with financial statements received by NABARD. Wherever, audit for 2021-22 is completed and report available, the same may be submitted together with financial statements. Further, the audit of Regional Rural Banks as on 31.03.2022 should be completed by 30.06.2022 and the position as on 31.03.2022 will be reckoned for sanction and drawal of credit limits on or after 01.07.2022.

(B) CRAR

CRAR should be 9 % or more as on 31.03.2022.

(C) NPA norms

RRBs having net NPAs upto 6% will be eligible for refinance. However, with a view to increasing the credit flow in the North Eastern Region, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, the net NPA norms may be relaxed by additional 5% in these States.

All other terms and conditions detailed in Circular No.75/DoR-25/2014 dated 23 April 2014 remain unchanged.

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