External Circular No. 255 / DoR - 72 / 2019 dated 23 August 2019
No.NB.DoR.ST Policy/ 1491 /A-1( Gen) /2019-20
The Managing Director
All State Cooperative Banks
Provision of Additional Short-Term (ST) refinance by NABARD to State Cooperative Banks for financing Seasonal Agricultural Operations (SAO) – Modification in Policy for F. Y. 2019-20
Please refer to letter No. NB.DoR.ST.Policy/3291/A-1(Gen)/2018-19 dated 28 March 2019 (Circular No.85/DoR-27/2019) on the captioned subject, communicating policy for sanction of additional Short -Term (ST) refinance to State Cooperative Banks for financing Seasonal Agricultural Operations (SAO) for the FY 2019-20.
2. In para 6 of the above circular, it has been made mandatory for banks to serve a notice of 15 days for prepayment of credit limit availed from NABARD.
3. The policy has since been reviewed and the changes in Para 6 of the circular may be read as under:
“The amount drawn against the limit are repayable on demand. However, each drawal on the credit limit would be treated as a separate loan and would normally be repayable in a period of 12 months from the date of drawal. Repayments before the expiry of 12 months may be accepted by NABARD with minimum notice of 15 working days. The notice period may, however, be waived in case the repayment is made 30 days after the date of drawal.”
4. Please acknowledge receipt of this circular to our Regional Office.
G. R Chintala
Chief General Manager