Deposit Mobilisation by Agriculture and Rural Development Banks (ARDBs) - Scheme for Deposit Mobilisation
Ref. No. NB.IDD.Coop /596 / POL-8 /2019-20 
20 August 2019
Circular No. 254 / IDD- 05 / 2019
The Registrar of Cooperative Societies
States with SCARDBs 
Dear Sir
Deposit Mobilisation by Agriculture and Rural development Banks (ARDBs) – Scheme for Deposit Mobilisation
Please refer to the guidelines for Deposit Mobilisation in ARDBs, vide NABARD circular No.1086 dated 26 August 1997 (copy enclosed), issued based on the Bhandari Committee recommendations in consultation with RBI. The Deposit Mobilisation Schemes of ARDBs, have so far been guided by the aforesaid circular.
2.  RBI/ NABARD have been actively involved in providing guidance, support and financial assistance to the ARDBs over the years. However, in the wake of the passing of the Banning Unregulated Deposit Schemes, Act, 2019, issued vide gazette notification dated 31 July 2019, the deposit schemes of ARDBs (which are Societies registered under the respective State Cooperative Acts), come under the regulatory authority of the State Governments. As the ARDBs are not covered under the B R Act, 1949 (AACS) and the State Government having been designated as the authority under the Act ibid, may lay down the guidelines for acceptance of deposits by ARDBs. 
3.  In view of the foregoing, the State Government/ RCS may draw up/allow suitable deposit schemes for ARDBs, within the framework of the Acts applicable to ARDBs. NABARD will continue to provide guidance and support to these institutions in improving their functioning as hitherto. 
Yours faithfully
(Sarita Arora)
Chief General Manager
Encls: as above