Circulars

Provision of Additional Short-Term (ST) refinance by NABARD to State Cooperative Banks for financing Seasonal Agricultural Operations (SAO) - Operational Guidelines for F. Y. 2022-23 @ Floating Rate of Interest - Corrigendum

Ref.No.NB.DoR/508/A.1.Gen/2022-23

Circular No. 144/DoR-50/2022

23 June 2022

Managing Director

All State Cooperative Banks

Dear Sir

Provision of Additional Short-Term (ST) refinance by NABARD to State Cooperative Banks for financing Seasonal Agricultural Operations (SAO) – Operational Guidelines for F. Y. 2022-23 @ Floating Rate of Interest - Corrigendum

Please refer to our Circular No.NB. 120 /DoR-43 /2022 dated 31 May 2022, communicating the operational guidelines for sanction of Additional Short -Term (ST) refinance to State Cooperative Banks for financing Seasonal Agricultural Operations (SAO) for the FY 2022-23 @ Floating Rate of Interest. In this connection, paragraphs 1, 5.1 (a) and 6.2 of Annexure I to the circular stand revised and may be read as under:

S. No Para No. of the circular No.120 Existing guidelines Revised guidelines
1 Para 1: Operative period of Additional ST (SAO) limit The operative period of Additional ST(SAO) limit for F. Y. 2022-23 will be 01.04.2022 to 31.03.2023. Additional ST (SAO) refinance will be provided to the StCB in respect of crop loans disbursed only during the operative period. The operative period of Additional ST(SAO) limit for F. Y. 2022-23 will be 01.04.2022 to 31.03.2023. Additional ST (SAO) refinance will be provided to the StCB in respect of crop loans disbursed only during the operative period.Each drawal against the operative limit will be repayable in 12 months.
2 Para 5.1 (a) Floating rate: Interest rate will be market driven and as decided by NABARD from time to time. Presently the RoI is linked to the 3 month T Bill and applicable premium.The RoI will be reset at the end of each quarter. The applicable interest rate will be communicated by the RO on day to day basis as per the prevailing rate. In the event of bank repaying the entire principal amount, the interest will be payable along with principal amount. Interest rate will be market driven and as decided by NABARD from time to time. Presently the RoI is linked to the 3 month T Bill and applicable spread.The RoI will be reset at the end of 90 days from the date of disbursement. In the event of bank repaying the entire principal amount, the interest will be payable along with principal amount. The applicable interest rate will be communicated by the RO on day to day basis
3 Para 6.2 Due Date for payment The due date for repayment of principal and interest will be quarterly with principal and interest due dates on 30th June, 30th September, 31st December, and 31st March and interest due dates on 1st July, 1st October, 1st January, and 1st April. The first due date of principal amount for refinance sanctioned on any date in quarter will fall in next quarter. The approved repayment schedule will be specified in letter (s) of sanction. In case the principal due date falls on a holiday, the principal has to be paid on the previous working day. For interest, if the due date falls on a holiday, it has to be paid on the next working day. The due date for interest payment will be at quarterly rests with due dates on 1st July, 1st October, 1st January, and 1st April. If the due date falls on a holiday, it has to be paid on the next working day.

3.The reset will be done on the 91st day of the disbursement. In case, it falls on a public holiday (Mumbai), the reset will be based on the interest rate of the previous working day

Yours faithfully

(V K Sinha)

Chief General Manager

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