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Provision of ST credit limits to Scheduled Commercial Banks(SCBs) under Sec.21(1)(iv) &(v) read with Sec.21(4) of NABARD Act,1981 for Financing Working Capital & marketing requirements of Weavers/HWGs/MWs,etc. by NABARD - Policy for the year 2019-20
EC No. DoR .2019-20  21 June 2019
             
No.NB.DoR-Policy(Weavers)  /A-7(P)/2019-20
The Chairman
Scheduled Commercial Banks
 
Dear Sir 
 
Provision of Short term credit limits to Scheduled Commercial Banks (SCBs) under Section 21 (1) (iv) & 21(1) (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 fold and producer group companies by NABARD – Policy for the year 2019-20
.   
Please refer to our Policy Circular No.111/DoR-37/2018 dated 16 May 2018 read with Circular No.74/DoR-24/2014 dated 23 April 2014 communicating NABARD’s policy for provision of short term credit limits for financing working capital and marketing requirements of Individual Weavers/Handloom Weaver Groups/Master Weavers, weaver members of defunct / non working weaver societies, Mutually aided Cooperatives Societies, 
Societies outside the Cooperative fold and producer group companies. 
 
It has been decided to broadly continue the same policy for 2019-20 also. The eligibility criteria prescribed for the year 2019-20 are:
 
(i) Compliance with minimum CRAR norm of 10.875% (as per Basel III) as on 31.03.2018
(ii) Net NPAs not exceeding 6% of net loans and advances outstanding as on 31.03.2018. Further, the NPA position will be reckoned for the Bank as a whole. 
(iii) The bank should be in Net profit in 2017-18.
(iv) In case of improvement or deterioration in the above parameters as on 31.03.2019, the same will be reckoned for eligibility of refinance.
 
NABARD's refinance to Scheduled Commercial Banks will be at an interest rate of 7.9 % p.a. minimum or such other rate as decided by NABARD from time to time. However, the period for reckoning on various parameters of terms and conditions and quantum of refinance as indicated in our Circular No.74/DoR-24/2014 dated 23 April 2014 will undergo changes accordingly.  All other terms and conditions detailed in Circular No.74/DoR-24/2014 dated 23 April 2014 will remain the same.
 
4.          Kindly acknowledge receipt of the same.
 
????? Yours faithfully
(?? ?? ??????? G. R. Chintala) 
????? ?????????? Chief General Manager