WELCOME TO Presentation on Crop Loan Procedure

Historical Perspective and Evolution of co-operative credit delivery system

Preponderance of money lenders in the preindependence era dependence on money lenders for Agricultural Loan - Threat for loss of land ownership- Deccan Revolt political and economic issue to British Rule Enactment of Civil Procedure and land registration system Emergence of co-operative credit delivery system to serve the rural community Evolution of short term co-operative credit structure as a friend in need to the rural populace

Composite Credit Limit Application

Prepared by the PACS in quadruplicate (R.O., Branch, PACS) within January of the preceding year one copy to be retained as O/C, 3 Copies to be submitted. Sl. No, Members Name with Fathers / Husbands Name, Address, arable land (to be verified with Land/ P&D Register), Crop wise allocation of land with respective SOF and amount of loan, area and notional value of land mortgaged Total loan amount for all crops, members signature/ LTI, Limit proposed by PACS, Limit proposed by Supervisor, Limit proposed by Branch Manager, Limit sanctioned by RO

CCL Contd.
CCL to be prepared for all members preferably in a single lot, supplementary CCL to be prepared in case of necessity Member-wise credit limit not to exceed the maximum amount of loan defined from time to time (now Rs.1,50,000/) Sufficient mortgage of land to be ensured in appropriate cases All columns to be checked member-wise, checking with reference to total columns may be misleading.

CCL Contd.
Accompaniments to CCL : - Audited/ proforma BS etc. - Uptodate cash account - AGM/SGM decision on MBP - Board resolution for sanction of individual members credit limits - forwarding letter duly signed Authority in favour of the Bank to foreclose mortgage (if not so provided in the bye-laws)

Scale of Finance
Decided by the DLTC comprising of PAO, ARCS, RM, Lead District Manager, Representatives of good working PACS, some progressive farmers, (DDM,Nabard is a special invitee) SOF so far determined for 3 years ( as decided by Bank now on annual basis) .

P&D/LAND REGISTER
Sl. No., Name with Fathers / Husbands Name, Address, Property, Income, Expenses, Debts to the Bank, Mortgage of Land Property-Land : Mouza, Khatian No. Dag No., Area, Nature of Land, Nature of ownership/ possession, Cattle and other income generating assets with value

P & D Register Contd.

Income income from landed property, income from other assets including deposits, total income Expenses annual rental, cultivation expenses, other expenses & total Debts to society, to others, total Mortgage details of mortgaged land Signature signature of member, Manager, etc.

MORTGAGE REGISTER
Sl. No., Name, Fathers/Husbands Name, Address; Land : Mouza, Khatian No. Dag No., Area, Nature of Land, Nature of ownership/ possession, valuation of land as per notional value, date of creation of mortgage Mortgage should not be aged more than 12 years. In case of necessity, fresh mortgage to be created Special care to be exercised in case of new members and such members as are ADWDR beneficiaries PACS officials to check ownership of mortgaged property of the member annually and supervisors to have sample checking, if not total checking To be verified if Mortgage Register is updated on an ongoing basis

Checking of CCL by Supervisors

# Specified form to be filled in # Particulars of CCL to be checked # Membership to be checked with reference to Membership Register (updated) # P&D Register/ Land Register to be checked # All member-wise inner column to be checked # Mortgage Register to be checked # Enabling decision # MBP, RBP to be checked # Default of BOD members to be checked # Checking of bye laws for enabling provision # Cash - in - transit insurance

DRAWAL PETITION
> Coverage of Non-defaulter members only Member-wise amount within sanctioned limit No dues certificate for new memebrs Uptodate Cash account Cases of defalcations and actions thereagainst Proper utilisation funds drawn in the previous drawal

DOCUMENTATION
Documentation to precede disbursement Acceptance of terms and conditions of sanction KARBANAMA (Mortgage) Joint and several personal guarantees in suitable cases Time Promissory Note (TAMASUK) Authority for foreclosure (if not so provided in the bye-laws) Demand promissory note ALL DOCUMENTS TO BE EXECUTED PROPERLY BOTH FOR MEMBERS AND SOCIETY Safe Custody of Documents at both levels

DISBURSEMENT
Must be within seasonality period at all levels. Proper Share linkage to be ensured To be disbursed by credit to individual SB accounts in case of deposit mobilising PACS Cash disbursement should preferably be made in the presence of Supervisor, CI/ Bank Officer Un-disbursed amount to be refunded to the Bank within 24 hours excluding Holidays (alongwith disbursement certificate) Subsequent disbursements after proper utilisation of previous drawals within residual sanctioned limit

Disbursement contd.
Disbursement against acknowledgement Documentation to precede disbursement Disbursement to be made at a convenient place

Disbursement contd.
Disbursement to be made with a gap of intervening 7(seven) days from respective repayments Disbursement programmes to be declared before hand to induce repayments by members for assured credit

CALCULATION OF INTEREST
Interest to be calculated on daily products basis at both the levels Interest to be realised/calculated at half yearly rests or earlier when repayments are made in full Penal interest to be charged as per norms No interest to be charged on amounts refunded within scheduled time Timing

PREPARATION OF DEMAND LIST

Crop-wise, member-wise demand lists to be prepared Demand list is the main tool for monitoring recovery Demand notice to be issued to the members well before Demand list to be prepared as on 31st March and 30th June positively Demand for both interest and principal

DETAILED LIST
Member-wise detailed list as on 31st March to be prepared and submitted This has to be checked by the Supervisor thoroughly and by the Branch Manager/Officer on sample basis Detailed list to tally with personal ledgers

RECOVERY
Recovery to be made within stipulated time frame Prior declaration of subsequent dates of disbursement enlisting assured credit will definitely help recovery Persuasive measures is a must before coercive measures Sections 95, 110, 128, 112

AGRIL INVESTMENT CREDIT

Need for Investment Credit Eligible Borrowers Purposes Fixation of Repayment Schedule Demand Calculation Recovery

Infrastructure of PACS
Office Godown CDF Assistance by NABARD CDF Assistance from WBSCB Possibilities for linkages with programmes under ICDP, RKVY

Deposit Mobilisation by PACS

Conditionally Win-Win Proposition Opportunities Threats Checks & Controls Permitted avenues for deployment of deposit mobilised Deposit Guarantee Scheme under contemplation by NABARD

Insurance
Crop Insurance- scheme, modalities for collection and remittance of premium, surveillance, receipt and appropriation of claims received. Cash-in-Transit Insurance Cash-in-Safe Insurance Cash-on-Counter Insurance PAIS

ADWDR Scheme 2008

Congrats for successful implementation Impact of the scheme Initiatives by the STCCS,WB Recent leaflet- contents, intents, tasks enjoined Appropriation of receipted claims and related accounting entries- original and supplementary instructions with imports.

Revival Package
Contents and intents Stages of implementation Present tasks in respect of A/B/C Category PACS Accounting entries Deliberations

Interest Subsidy Scheme

GoWB Interest Subsidy Scheme as valid upto 31.03.2006 GoI interest Subsidy Scheme as declared in the budget 2009-10- contents, intents, opportunities, our endeavour to bank upon the opportunities.

Interest Subvention Scheme

GoI Interest Subvention GoWB Interest Subvention Interest Subventions leading to profitable crop loan business enlisting branch profitability, to explore the possibility with right earnest.

Business Diversification of PACS

Paddy pledge business Input business Consumer goods business Other business possibilities in the areas to be deliberated upon

Reports and Returns

Fortnightly return NODC return KCC return Financing of ADWDR beneficiaries return SHG return SLBC return Timely submission is a must to project your achievements

WBSSP
The scheme in brief The modalities Scope for business development and branch profitability Timely submission of claims Dissemination of information Formation and financing of SHGs

Thank You For Interactive Deliberations