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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 2020-
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 2020-21
 
Please refer to our Policy Circular No.192/DoR-53/2019-20 dated 21 June 2019 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. 
 
2. It has been decided to broadly continue the same policy for the year 2020-21. The eligibility criteria prescribed for the year are as under :
 
(i) Compliance with minimum CRAR norm of 11.50% (as per Basel III) as on 31.03.2019
(ii) Net NPAs not exceeding 6% of net loans and advances outstanding as on 31.03.2019.The NPA position will be reckoned for the Bank as a whole. 
(iii) The bank should be in Net profit in 2018-19.
(iv) In case of improvement or deterioration in the above parameters as on 31.03.2020, the same will be reckoned for eligibility of refinance.
 
3. Interest rate on NABARD's refinance under this line of credit is at present 5.55% p.a., payable at quarterly rests on the first day of each quarter i.e. on 01 July, 01 October, 01 January and 01 April every year, or on repayment of the entire principal amount. It is, however, subject to revision by NABARD from time to time. The parameters, terms and conditions and quantum of refinance as indicated in our Circular No.74/DoR-24/2014 dated 23 April 2014 may also undergo changes accordingly.
 
4. All other terms and conditions detailed in Circular No.74/DoR-24/2014 dated 23 April 2014 will remain unchanged.
 
5.       Kindly acknowledge receipt of the same.