Download - KCC Complete
PUNJAB NATIONAL BANK
PRIORITY SECTOR & LEAD BANK DIVISION
AGRICULTURE CELL
H.O. ATMA RAM HOUSE, 1 TOLSTOY MARG, NEW DELHI.
Phone No.23350240, 23350419;fax no.23359558; email ID [email protected]
Date: 08.10.2011
TO ALL OFFICES
In supersession of following Farm Credit Circulars:
Circular No.
Date Circular No.
Date
Codified 13 11.01.2007
8 26.02.2008
15 25.03.2008
43 08.06.2009
52 16.07.2009
73 12.10.2009
78 09.11.2009
37 27.09.2010
CODIFIED FARM CREDIT CIRCULAR NO. 17 /11
REG: SCHEME FOR FINANCING UNDER PNB KISAN CARD (KCC).
Detailed guidelines regarding PNB Krishi Card Scheme were circulated to all Offices vide Codified Farm Credit Circular No.13/2007 dated 11.01.2007 followed by several other circulars issued from time to time.
As per existing system, the farmer is to execute fresh document for enhancement of KCC limit and charge has to be created afresh for the enhanced portion with the revenue authorities. This takes lot of time. Further, we enhanced the maximum limit of KCC from Rs 10 Lakh to Rs 20 Lakh for our existing borrowers having satisfactory dealing with the bank for the last two years. However, the consumption loan limit continues to be at a maximum of Rs 50,000/-.
After examining the KCC guidelines of other banks, suggestions received from the field and in order to further simplify our scheme following modifications have been made in the KCC Scheme:-
I. Maximum Consumption loan limit has been increased from maximum of Rs.50,000/- to Rs one lakh or 25% of the limit, whichever is lower.
II. Allow fixation of limit for crop production/working capital limit for allied activities at 50% higher than the eligible limit as on the date of sanction. However, based on the farmers’ actual requirements, upto maximum eligibility (calculated on the basis of latest scale of finance, etc.) operative limit may be fixed for every year. To quote farmer having credit eligibility of say Rs.1,00,000/- may be actually sanctioned a limit of Rs 1,50,000/- with operative limt of say Rs 1,00,000/- in the first year, Rs.1,10,000/- in the 2nd year, Rs.1,20,000 in the third year and so on. Normally the inflation ranges between 8-10% & therefore enhancement in the operative Limit may also be upto 10%. However, the percentage of enhancement in the operative limit may not be fixed and it may vary each year proportionate to
increase in the scale of finance of that particular area. In specific cases if the actual credit eligibility as per Bank’s guidelines exceeds the proposed 50% enhancement, Incumbents will be free to sanction higher limit after obtaining fresh documents with proper justifications like increase in scale of finance, change in cropping pattern, increase in land holding (owned/leased), etc,.
III. No margin is required upto limit of Rs. 3 lakh (earlier it was Rs. 2 lakh).
IV. Instead of present system of four types of Kisan Credit Cards (security items), it has been decided to use single card which will be a non-security item. Further, nomenclature of the card has been changed as PNB Kisan Card. However, branches may continue to use the existing card till the stock is exhausted and the new cards are supplied by Printing & Stationary Department.
V. The limit of Rs. 50000/- for granting relief against indebtedness due to borrowing from non institutional lenders has already been increased to Rs. 1 lakh under PNB Krishak Sathi
Scheme. Therefore, the credit facility to redeem the outstanding dues of money lenders may be covered only under PNB Krishak Sathi Scheme.
Guidelines on the captioned scheme have been consolidated by subsuming the operative part of subsequently issued circulars as per Annexure.
Incumbent Incharge of the branches are advised to adhere to guidelines contained in scheme for financing under PNB Kisan Card and boost agriculture advances.
General Manager
Encl: As above
Annexure to Codified Farm Credit Circular No. 17 /11 dated 08.10.2011
REG: SCHEME FOR FINANCING UNDER PNB KISAN CARD (KCC).
1. ELIGIBILITY:
Progressive literate and illiterate farmers who are owner cultivators, tenants, lessee or allottee farmers with recorded occupancy rights or farmers with ancestral/perpetual rights of cultivation, Joint Liability Groups (JLGs). Oral tenants can be eligible for loan only if land owners agree to become co-borrowers. In the accounts which are secured by liquid securities like FDR, NSC/KVP, etc., the cards to oral tenants can be issued without stipulating the condition of land owners to be made co-borrowers. Landless labourers, share croppers, tenant farmers and oral lessees can be issued PNB Kisan Card (KCC) upto limit of Rs 50,000/- on the basis of an Affidavit, duly stamped as per the respective State Stamps rules.
Farmers should have stable financial position and a good banking habit. In case of existing borrowers, track record of repayment is to be taken into account.
Identification of the farmers will be done on the basis of photograph of borrowers along with signatures in case of literate borrowers and in case of illiterate borrowers; he shall be
identified by his photo and thumb impressions. He shall put his thumb impressions in the presence of the Incumbent Incharge. Literate farmers will put signatures and illiterate farmers will put thumb impressions on the card which will be authenticated by the Incumbent Incharge of the branch and the card will be laminated.
After obtaining prior permission of the Circle Head, PNB Kisan Card can be issued to the staff members also, provided he/she is a cultivator owner of the requisite land holding and is residing at a place from where he/she can conveniently undertake/supervise all agriculture operations and sanctioning authority is satisfied in this regard.
2. PURPOSE OF THE LIMIT:
Purpose of the loan would cover short term working capital for agriculture activities, other domestic requirements such as education, consumable items, medical expenses, etc.,term credit needs of the farmers. For consumption needs, loan may be sanctioned upto 25% of the limit or Rs. one lakh, whichever is lower. Thus the limit may be set up in such a way that the consumption loan portion should be maximum 1/4th and remaining 3/4th should be for
productive purposes. To quote if the credit requirement of farmer for crop loan/allied activities/term loan is arrived at Rs 1,50,000/-, then the consumption loan will be allowed upto maximum of Rs 50,000/- (1/3rd of the productive limit) and the total limit will be Rs 2,00,000/- . Thus the consumption loan will be restricted upto 25% of the total limit.
Borrowers can avail limits either under PNB Kisan Card Scheme or Kisan Ichchhapurti Yojana or Kisan Sampuran Rin Yojana. But borrower can avail limit under only one of the three schemes, as per applicable terms and conditions of the respective scheme.
3. EXTENT OF LIMIT:
Maximum Rs.10 lakh (Rs.20 lakh for existing borrower farmers having satisfactory track record of minimum 2 years).
4. FIXATION OF LIMIT:
Limit may be fixed for term loan and working capital requirement limit for agricultural and allied activities, etc., based on the scale of finance/unit cost of the asset/s proposed to be acquired by the farmer, the allied activities already being undertaken on the farm, the Incumbents’ judgment on his repaying capacity vis-à-vis total loan burden devolving on the farmer, including his existing loan obligations.
While sanctioning the limit under such cases, the Incumbent Incharge will have to certify the approved scale of finance/unit cost for activities mentioned in each and every proposal. A copy of the approved scale of finance/unit cost should also be kept on bank’s record. Further, Incumbents Incharge may disburse credit in accordance with actual costs involved in cases where farmers adopt scientific/advanced methods of cultivation using modern technology, hybrid seeds, etc.
The limit for the individual farmer may be worked out on the basis of total agriculture income stream of the farmer. To assess income from farm activities, extent of land holding, cropping pattern, acreage and average yield of each crop grown, price realisation, etc., are to be examined. For this purpose, the branch should
obtain revenue records i.e. Fard Zamabandi & Khasra Girdawari of the farmer to verify the details noted therein. The revenue records should not be older than 9 months. Price realisation may be ascertained by either the Government fixed minimum support price or local price, whichever is lower.
The limit is to be fixed taking into account the total requirement of the farmer on annual basis for growing crops round the year as also the other production credit needs for allied agricultural activities such as dairy, poultry, etc., other domestic needs and investment needs of the farmers. Total limit sanctioned to farmers should have a relationship with the projected net earning and the repaying capacity of the borrower.
Bifurcation of limit:
Maximum Rs 5 lakh (Rs.10 lakh for existing borrower farmers having satisfactory track record of minimum 2 years) for cash credit limit for crop production, consumption needs & working capital for allied activities;
Need based term loan within overall ceiling of Rs 10 lakh ((Rs.20 lakh for existing borrower farmers having satisfactory track record of minimum 2 years) including cash credit limit mentioned above.
Since the limit may be fixed by taking into account the requirement of the farmer on annual basis for all farm activities and there is no restriction on number of transactions in the cash credit account; the farmer can avail loan for the next crop before liquidation of the existing dues.
Staggered Limit:
Branches may fix limit for crop production/working capital for allied activities at 50% higher than the limit arrived as per the above guidelines. However, based on the farmers’ actual requirements, Operative Limit may be fixed every year. To quote farmer having credit requirement of say Rs.1,00,000/- may be actually sanctioned a limit of Rs 1,50,000/- with Operative Limit of say Rs 1,00,000/- in the first year, 1,10,000/- in the 2nd year, 1,20,000 in the third year and so on. Normally the inflation ranges between 8-10% & therefore
enhancement in the Operative Limit may also be upto 10%. However, the percentage of enhancement in the Operative Limit may not be fixed and it may vary each year proportionate to increase in the scale of finance of that particular area. In specific cases if the actual credit requirement as per Bank’s guidelines exceeds the proposed 50% enhancement, Incumbents will be free to sanction higher limit after obtaining fresh documents with proper justifications like increase in scale of finance, change in cropping pattern, increase in land holding (owned/leased), etc. However, the farmer has to ensure that no drawal in the account remains outstanding for more than 12 months.
Guidelines for opening Cash Credit Account in CBS:
All the Cash Credit limits being sanctioned under the revised KCC Scheme shall continue to be opened in CBS under scheme code – CCAKC and all the operative guidelines for opening of these guidelines in the system should be meticulously followed.
However, in view of the revised guidelines on sanctioning limits, for crop production/ working capital for allied activities, at 50% higher than the limit arrived as per assessment and fixation of ‘Operative Limit’ every year, special attention should be given in assigning the ‘H – Limit History Details’. For this, branches should meticulously follow the guidelines given at Appendix – I to this circular.
It is clarified that:-
(i) If the farmer's credit needs, i.e., Production+ Investment are upto Rs 10 lakh, (Rs.20 lakh for existing borrower farmers having satisfactory track record of minimum 2 years), such cases should invariably be covered under KCC Scheme. However, the crop production credit can be maximum upto Rs 5 lakh (Rs.10 lakh for existing borrower farmers having satisfactory track record of minimum 2 years) under PNB Kisan Card Scheme.
(ii) However, if the production credit exceeds the prescribed KCC limit of Rs 5 lakh (Rs.10 lakh for existing borrower farmers having satisfactory track record of minimum 2
years) or total credit requirement including investment credit, exceeds the Rs 10 lakh (Rs.20 lakh for existing borrower farmers having satisfactory track record of minimum 2 years), then credit may be provided under Kisan Sampuran Rin Yojana.
Safeguards:
1. The KCC limit higher than the existing Rs.10 lakh and the cash disbursement of investment credit upto Rs. 5 lakh will be allowed only to our existing borrower farmers having satisfactory track record of minimum 2 years.
2. The production credit / investment credit limit will be as per Scale of Finance/ Unit cost based on the actual credit need of the farmers.
3. End use of the funds will be verified by the Incumbent Incharge in respect of loan for Investment Purposes and certificate in this regard will be kept on bank’s record.
4. The loan above Rs. 1 lakh will be secured by collateral security of the value of minimum
100% of the loan for other farmers and 75% of the loan for small and marginal farmers.
5. The limit sanctioned will have a correlation with the total expenditure of the farmer and his income stream from agriculture as well as non agriculture sources on an annual basis.
6. For the sake of simplicity, limit is to be fixed in multiples of Rs.1000/- and principle of round off of multiple fraction may be applied i.e., for less than Rs.500/- and more than Rs.500/-, limit may be fixed on lower slab, and higher slab, respectively. For practical purposes, minimum limit will be Rs.1000/-.
7. Double financing of the activities must be obviated to safeguard Bank's interest.
5. MARGIN:
Amount of loan Margin
(i) Upto Rs.3 lakh Nil
(ii) Above Rs.3 lakh to Rs.5 lakh 10%
(iii) Above Rs.5 lakh to Rs.20 lakh 25%
Note:
(i) For cash credit limit Borrower’s stake may not be insisted in cash. Cost of family labour and inputs of the farmer may be treated as borrower’s stake. However, for term loans margin may be maintained as stipulated above.
(ii) Where subsidy is available, the same should be treated as margin and no further margin money should be stipulated unless subsidy falls short of requisite margin.
(iii) Labour and materials, etc., contributed by farmer should be treated towards building up of margin.
(iv) Where the scheme has been approved by NABARD, the terms and conditions stipulated by NABARD in respect of margin shall be followed.
(v) In respect of Govt. sponsored schemes, the margin/security norms shall be as per the respective schemes for agricultural advances or the above mentioned margin, whichever is lower.
6. SECURITY:
I. For Cards issued upto Rs.1,00,000/-
Hypothecation of crops/assets created out of bank loan.
II. For cards issued above Rs.1,00,000/-
(i) Hypothecation of crops/assets created out of bank loan.
AND
(ii) Charge on land as per Agricultural credit Operations and Miscellaneous (Provisions) Act of the State concerned/Mortgage of agricultural land valued at 100% of amount of loan for other farmers, 75% of the loan amount for small farmers /marginal farmers
OR
Alternate Security, viz., charge/lien over liquid securities such as term deposits/NSC/KVP, land and building situated outside village, etc., which may be considered adequate.
OR
Suitable third party guarantee.
NOTE:
(i) In States where legislation on the lines suggested by the Talwar Committee has been passed, a simple declaration creating a charge on the land offered as security will be sufficient. In such cases, mortgage of land may not be necessary.
(ii) While valuing land for the purpose of security, post development value of land shall be taken into consideration.
(iii) The RBI has advised banks to ensure that value of security taken is commensurate with size of loan and desist from asking additional collateral security by way of guarantee where the land mortgaged is considered adequate. Branches are, therefore, advised that third party guarantee should not be taken in cases where mortgage of agricultural land has been accepted a security. RBI has further advised that branches should desist from the practice of taking collateral security/third party guarantee/mortgage of land for P.S. Advances, where it has been indicated that such security is not to be taken.
(vi) Branches may not ask for mortgage of land in cases where the amount of loan net of subsidy is upto Rs. 1,00,000/- or subsidy is not received in advance or simultaneously at the time of disbursement of loan. However, in such
cases, suitable third party guarantee may be obtained.
(v) In case the land/shed is on lease/rent basis or otherwise where borrower’s title to land does not permit him to create a mortgage thereof, suitable guarantee may be accepted as an alternative security. If, however, loan is allowed for construction of sheds, these must be mortgaged with the Bank as principal security except where these are constructed on land on which the borrowers do not have alienable title.
(vi) In case of loans for purchase of power tillers, hypothecation of assets alone will be sufficient even for loans above the aforesaid ceiling upto which no collateral security is required to be taken.
7. RATE OF INTEREST:
The rate of interest should be charged as per Loans & Advances Circulars issued by Head Office from time to time. Presently, rate of interest are as follow:
BPLR System
w.e.f. 01.08.2010
Base Rate System
w.e.f. 01.10.2010
a) Advances upto Rs. 50,000/-
i) Agricultural production credit
BPLR minus 0.75%
BR + 2.25%
ii) Agri. Term loans
BPLR BR + 3.00%
iii) PNB Kalyani Card
BPLR minus 1.00%
BR + 2.00%
b) Advances over Rs. 50,000/- but upto Rs.2 lakh
BPLR BR + 3.00%
c) Advances over Rs.2 lakh but uptoRs.20 lakh
BPLR BR + 3.00%
Interest is 7% p.a. in the regular Crop loan/KCC accounts on running balance outstanding upto Rs. 3 lakh. On the irregular accounts / outstanding beyond Rs. 3 lakh, normal rate of interest is to be charged. The above guidelines are linked to the subvention scheme of GOI/RBI.
NOTE:
(i) Both working capital and term loans are to be clubbed together to determine the size
of the loan for the purpose of fixing the rate of interest for all agriculture borrowers.
(ii) Payment of interest should be insisted upon only at the time of repayment of loan instalments as fixed.
(iii) Interest on current dues should not be compounded.
Application of interest:
Interest on agricultural loans should be applied at the end of half-year but it should not be debited to borrower’s account. Instead, it should be debited to a separate account opened in Subsidiary General Ledger – “Interest Accrued on Advances to Farmers”. On the date fixed for repayment of each instalment towards adjustment of loan, interest due for previous half-year or part thereof should be debited to borrower’s account by corresponding credit to the “Interest Accrued on Advances to Farmers” head.
When crop loans or instalments under term loans become overdue, branches can add interest outstanding to the principal and compound the interest. However, total interest debited to an account should not exceed the principal amount in respect of short term advances to small and marginal farmers.
The interest on the debit balance will be calculated on daily product basis at half yearly rests but it should not be debited to the borrower’s account. Instead, it should be debited to a separate account, opened in Subsidiary General Ledger ‘Interest Accrued on Advances to Farmers’. On the date fixed for repayment of the loan, interest due for the previous half-year or part thereof should be debited to borrower's account by corresponding credit to the ‘Interest Accrued on Advances to Farmers’ Account’.
Payment of Interest on credit balance in limit to farmers:
Branches may pay interest @4% per annum (as applicable to Saving Fund Deposits). Other guidelines and procedures as applicable to
Saving Fund Accounts for calculation and payment of interest shall be followed.
8. LOANING POWERS:
Loaning powers should be exercised as per Loans & Advances Circulars issued from time to time.
9. LOAN APPLICATION AND DOCUMENTATION:
S. N. Particulars of the Form Form No.
For Loan Upto Rs One Lakh
(i) Simplified application cum sanction for loan upto Rs. 1 lakh
PNB 1175
(ii) Hypothecation Agreement upto Rs. 1 lakh
PNB 1087 (Revised)
For Loan above Rs One Lakh
(iii) Application for agricultural credit
PNB 762 R
(iv) Prescribed Annexure/Appendix for each agricultural activity
PNB 763(R) to 784(R)
(v) Hypothecation Agreement PNB 1041 (R)
(vi) Deed of guarantee, wherever applicable
PNB 1042(R)
(vii) Mortgage deed, wherever applicable
PNB 1043(R)
Other documents
(viii) Copies of documents establishing ownership/cultivation rights called Furd Jamabandi, Khasra/Khatauni Girdawri (or by other vernacular names).
(ix) Letter of Undertaking to be obtained from the applicant
Appendix-II.
Note:
For loans upto Rs 50,000/- , copies of revenue extracts may not be insisted upon and in lieu thereof, branches may accept the following revenue documents for short term loan:
a) Extract from the latest Revenue/Agricultural Pass Book issued by State Revenue Department.
b) Receipt issued by the State Revenue/Irrigation Department for payment of land revenue or irrigation charges or any other document issued by State Revenue Department containing details of ownership/ cultivation rights, kila/plot number, area of land and other requisite details. Such receipt/document should not be more than nine months old.
c) In case a farmer is already availing crop loan/term loan from our Bank and particulars of his/her land holdings with nature of rights are on Bank’s record, local enquiries may be made to verify the present position and in case there is no adverse change, loan may be considered without asking for fresh copies of revenue records every time upto three years.
d) Certificate provided by the Local Administration/Panchayati Raj Institutions regarding the cultivation of crops and verifying the identity and status, for the purpose of
lending to landless labourers, share croppers and oral lessees.
e) An affidavit containing details of land tilled/crops grown. However, farmer will give an undertaking in the affidavit that he has not raised any loan from other banks/financial institutions.
f) A simple Application-cum-verification report containing details of land duly countersigned by Revenue Officials, viz., Patwari/Naib Tehsildar/Tehsildar, etc.
g) Landless labourers, share croppers, tenant farmers and oral lessees can be Issued PNB Kisan Card (KCC) upto limit of Rs 50,000/- on the basis of an Affidavit.
h) For Limit above Rs 50,000/-, the guidelines in vogue are to be followed
i) Branches financing sugarcane growers under Tripartite Agreement may accept details of land as given by borrower-farmer(s) in
Application for Agricultural Credit [PNB 762(R)] duly certified by Sugar-Mills subject to condition that Incumbents Incharge of such branches must satisfy themselves about the details given by farmer(s) and certified by Sugar-Mills in respect of land holdings of farmer(s) such as ownership/ cultivation rights, i.e., Furd Jamabandi and Khasra/Khatauni Girdawari, plot number, area, irrigated/ unirrigated land, as the case may be; after making local enquiry. Incumbents Incharge would also record their observations to this effect in Application for Agricultural Credit, under their signatures.
j) Non-Encumbrance Certificate from the concerned Office of Sub-Registrar of Assurances, i.e. Tehsildar Office relating to agricultural land or alternate immovable property offered as security should be obtained. If immovable property is not to be charged in the Bank’s favour as security, Non-encumbrance Certificate would not be required.
k) Tripartite Agreement to be executed amongst sugarcane growing farmer, sugar-mill and the Bank, wherever applicable.
l) Consideration vouchers
m) Proforma invoice/bills
10. CONFIDENTIAL REPORT (CR) ON BORROWER(S) AND GUARANTOR(S):
(i) For loans
upto Rs.50,000/-
No CR to be collected. However, information furnished by borrower in loan application form must be verified by Incumbent Incharge/Agriculture Officers and they will record their opinion to this effect.
(ii) For loan above Rs.50,000/- & upto Rs. 10 lakh
A brief CR on PNB 539 (Simplified Confidential Report on Borrowers and Guarantors in respect of Farm Advances) may be obtained along with the information furnished by borrower in Loan Application Form (PNB 762R) and here again, the information furnished by borrower must be verified by Incumbent Incharge/ Agriculture Officer; besides their report on brief CR.
(iii For loans Regular CR may be compiled on
) above Rs. 10 lakh
bank’s prescribed Form PNB 282 A/B depending upon constitution of borrower.
11. LETTER OF SANCTION:
As soon as loan is sanctioned, letter of sanction shall be issued to borrower as per Appendix-III.
12. ISSUE OF CARDS:
I. The Branch Manager will mobilise the applications for PNB Kisan Cards. After receipt of the applications the Branch Managers will appraise the applications and fix the credit limits for the individual farmer.
II. The issue and disposal of the application under the Scheme will be entered in the PNB Kisan Card Application Received-cum-Disposal Register (PNB 1033) supplied by Printing & Stationery Deptt, Head Office.
III. After fixation of the limit and completion of documentation formalities, the farmer will be issued a PNB Kisan Card valid for five years and also a Pass Book (PNB 1034) for record of the limit and transactions. Till the revised card is got printed, S-43 shall continue to be used for issuing the cards.
IV. Pass Book may be divided into three parts as given hereunder:-
(a) Cash credit limit for short term credit / crop loans with a build-in component of consumption loan.
(b) Cash credit limit for working capital requirement of allied agriculture activities.
(c) Term loan repayable in 5-7 years.
(d) Similarly, on the Kisan Credit Card also three separate limits as mentioned above may be indicated.
IV. The card will have the information like, photograph of the card holder, name of the card holder, name of the issuing branch, limit
sanctioned to the farmer (C/C Crop Loan, C/C Allied Activities, T/L), signature/thumb impressions, as the case may be, of the farmer, signature alongwith General Branch Power of Attorney (GBPA) number of the Manager of the issuing branch, PNB KISAN CARD NO. given by the Card Issuing Branch, validity period of the Card.
V. At the time of issuance of passbook, the limit sanctioned for different activities will also be mentioned under full signatures of the Manager with the General Bank Power of Attorney number in the passbook.
13. USAGE OF THE CARDS:
(i) Entire cash credit limit (Both C/C Crop Loan and C/C Allied Activities) under the scheme may be disbursed in cash for which no bills/receipts may be obtained.
(ii) Investment Loan may be disbursed by making payment directly to the supplier/s on behalf of borrower/s. Invoices/ receipts should be obtained and kept on the bank’s record. The Branch Officer may verify the end use of
investment loan by conducting spot verification within a month from the date of disbursement of loan and the same be kept on bank’s record. Entire term loan may be disbursed in stages, as per requirement of the borrower. However, before release of next instalment, the end use of previous instalment shall be verified.
(iii) However, in case of existing borrowers with satisfactory track record of 2 years, investment loan upto Rs. 5 lakh may be disbursed in cash without any requirement of bill/receipt except in cases where there is statutory requirement like in case of tractor. Beyond Rs. 5 lakh, the payment may be made directly to the supplier and bills/receipt thereof may be obtained.
14. REVIEW/RENEWAL OF THE KCC LIMIT:
(i) The card is valid for the period of 5 years.
(ii) The C/C limit shall be reviewed annually to ensure that crops and other sales proceeds are routed through limit account.
(iii) The card will be renewed on merits of the case at least one month before expiry of the
current card on a simple hand written request from the cardholder.
(iv) If the renewal is with the same limit, it may be renewed by issuing fresh card along with a sanction letter to the card holder.
(v) If there is any variation (enhancement) in the existing limit, fresh documents are to be obtained.
(vi) Where staggered limit is sanctioned (50% higher than the eligible limit), branches will obtain the documents for the full Sanctioned Amount. However, the operative limit may be enhanced every year but no fresh documents are required. The borrower should be intimated about every successive revision in the operative limit and his consent be also obtained each time on the format given in the Appendix IV.
15. SERVICE CHARGES FOR ISSUE OF CARDS:
(i) Service charges for issue of the cards as well as replacement of the card will be Rs 50/- irrespective of the size of the limit.
(ii) However, processing charges/ folio charges/ incidental charges, etc. are to be levied as per L&A/ Retail Banking Division circulars issued from time to time in addition to the above service charges. Presently under KCC Scheme processing charges are waived upto limit of Rs 3 Lakh.
16. REPAYMENT:
(i) C/C Crop Loan Limit Including Consumption Needs may be repayable in 12/18 months as the case may be and working capital limit for allied agriculture activities may be repayable in 12 months with following stipulations:
(a) Aggregate credits into the account during 12 months period should at least be equal to the maximum outstanding in the account.
(b) No drawal in the account should remain outstanding for more than 12 months.
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(ii) Term loan may be repayable in 5-7 years. However, in case of term loan for tractor, etc., where repayment period is more than 5 years, longer repayment period as prescribed under the respective scheme shall be allowed.
Note: To become eligible for the relaxed rate of interest of 7% and for Additional Incentive Subvention Under Subvention Scheme of Govt of India, each debit entry should be adjusted with in a maximum period of 12 months.
17. SPECIAL KCC DRIVE:
(i) Sowing periods of crops are seasonal and short; as such crop loaning is highly seasonal work. For successful implementation of KCC Scheme planning in advances and doing work on a campaign basis is required so that borrowers are contacted during pre-sowing seasons, applications are collected and sanctions accorded well in time.
(ii) For initiating and processing KCC loan proposal, Incumbents Incharge shall not be keeping the proposals pending for want of services of Agriculture Officers as lending for cultivation of crops does not necessarily require pre-sanction scrutiny by Agriculture Officers.
(iii) Indicative sowing seasons of principal crops in major growing States is given in Appendix-V to help Incumbents Incharge to initiate necessary action well in time.
18. STEPS TO BE TAKEN FOR BOOSTING PRODUCTION CREDIT:
Following steps will go a long way in increasing production credit:
(i) By launching crop loan campaigns, proper rapport may be made with the State Government Agencies/Departments like Chief Development Officer, District Agriculture Officer and Horticulture Officer at district level. At Block level, co-operation from Block Development Officer and Assistant Development Officer (Agriculture) and at Village level, liaison with Village Development Officer for procuring loan applications from farmers will be of much use. Such agencies shall also be helpful in arranging timely supply of agriculture inputs.
(ii) Since sowing of Kharif/Rabi crop is done within a very short span, efforts should be made to personally contact and finance the farmers not only on merits but well in time by according priority.
(iii) Publicity of various Crop Production Schemes of the Bank among the farmers through a word of mouth as well as printed booklet/pamphlets, etc. Besides, the farmers may be given information regarding cultivation of crops, inputs use, recommended package of practices, etc., for crop production. For this the services of the Agriculture Officers, wherever provided should be utilised for disseminating the technical information to the farmers through a word of mouth and in village level meetings in service area. Printed booklets/ leaflets in local regional language containing the area specific crop cultivation details, farm inputs availability/ quality, etc., may be brought out by the zones and circulated to all the rural/semi-urban branches for distribution among the potential borrowers.
Services of technical manpower posted in Specialised Agricultural Finance Branch
(SAFBs), wherever set up, should also be utilised for it.
(iv) Linking of rural branches with Farmers' Clubs.
In order to facilitate technology transfer regarding agricultural operations, wherever possible, branches shall link themselves with the activities of the Farmers' Clubs established/to be established with the initiative of NABARD.
(v) Organizing Kisan Gosthies for increasing mass awareness among farmers about agricultural credit schemes of the Bank.
19. Monitoring implementation of the Scheme:
For the purpose of monitoring the scheme, every branch shall report on monthly basis the number of cards issued to the farmers and limit sanctioned to the Circle Office before 7thof the following month. Circle Heads will submit the consolidated position to PS&LB Division, Head Office before 10th of the same month. Recovery position there under shall be reported at half-yearly interval i.e. March/September.
20. Relaxed KCC Scheme:
In order to cater to the requirement of higher limit of the farmers having large land holding, KCC Scheme has been relaxed for our existing borrower farmers having satisfactory track record of minimum 2 years.
The various provisions of relaxed KCC scheme are as under:
1. The maximum limit enhanced from existing Rs.10 lakh to Rs.20 lakh. However, the production credit limit including consumption loan will be restricted upto Rs.10 lakh.
2. Cash disbursal of production credit upto Rs 10 lakh as against the normal limit of Rs.5 lakh.
3. Need based investment credit with in the overall ceiling of Rs 20 lakh as against the normal limit of Rs.10 lakh.
4. Cash disbursement of investment credit upto Rs 5 lakh without any requirement of Bill/Receipt except in cases where there is statutory requirement like in case of tractor.
Beyond Rs 5 lakh, payment will be made directly to the supplier and bills/ receipt thereof obtained.
5. Valuation of land may be done on the basis of current Revenue Circle rate.
6. The land taken from the relatives or friends including NRI relatives or friends on oral tenancy basis may be included while calculating the eligible limit, provided the collateral security offered by the borrower farmer is sufficient to cover the total limit as per bank’s guidelines.
7. The affidavit specifying the land under cultivation on oral lease/tenancy basis submitted by the borrower may be considered sufficient.
8. During the site verification, the branch officer will ascertain the veracity of the facts of cultivation of the lease land specified in the affidavit and the report in this regard shall be kept on bank’s record.
9. The production credit / investment credit limit will be as per Scale of Finance/ Unit cost based on the actual credit need of the farmers.
10. End use of the funds will be verified by the Incumbent Incharge in respect of Investment Purposes and certificate in this regard will be kept on bank’s record.
11. The loan above Rs. 1 lakh will be secured by collateral security of the value of minimum 100% of the loan for other farmers and 75% of the loan for small and marginal farmers.
12. Repaying capacity of the farmer will be calculated on the basis of total expenditure on crop production, allied agriculture activities and other domestic requirements and total income stream of the farmer from agriculture and non agriculture sources on an annual basis.
13. It should also be ensured that Scale of Finance for each crop in different parts of the State may be fixed based on actual expenditure being incurred by the farmers. It is felt that Scale of Finance is not revised or even if revised, is not sufficient; it should be ensured that branches are financing farmers on the basis of revised Scale of Finance / Unit cost for investment purposes.
14. It is reiterated that the special relaxations are allowed only in case of our existing
borrower farmers who are having satisfactory track record of minimum 2 years. However, in order to cover the prospective borrowers, the condition of satisfactory dealing of 2 years has been waived in cases where the collateral security to the extent of 200% of the loan amount is available. Further the satisfactory dealing for minimum 2 years of other banks may also be considered for covering under our relaxed KCC Scheme.
21. PNB Kisan ATM Card for PNB KCC Account Holders
Bank has decided to launch the PNB Kisan ATM Card for KCC account holders, to enable the farmers to withdraw cash from their KCC limits in a hassle free manner through the ATMs as well as to use it at POS terminals for purchase of Farm inputs. Only the Base Branch of a KCC Account holder is authorized to issue these cards.
Presently, under the KCC Scheme, payments on the existing PNB KCC Cards are made against the cash credit limit. The PNB Kisan ATM Card holder can withdraw any amount within the available DP under the sanctioned limit from
any ATM / POS Terminal, subject to the daily withdrawal limit of the card.
The salient features of the PNB Kisan ATM Card are as under (to be issued to the literate farmers only):
1. PNB Kisan ATM Cards will be issued to KCC account holders only against their cash credit limit.
2. These Cards will be enabled for use at any ATM / POS terminal with a MasterCard / Maestro accreditation on a PAN India basis.
3. These cards will have a daily cash withdrawal limit of Rs. 25000/- a with a per transaction limit of Rs. 15000/-.
4. A card holder would be permitted to withdraw an amount upto the available DP within his sanctioned limit.
5. The PNB Kisan ATM Card may be Personalized or Non Personalized.
6. Stock of Non-personalized PNB Kisan ATM Cards will be held at branches. This stock of Cards and their PINs are sent in separate packets to branches which is required to be
maintained under dual custody as security documents.
7. Only one account would be linked to each card.
8. No Add on cards are permissible.
9. These cards will be valid for 5 years subject to availability of sanctioned limit/ availability of DP, date of review and date of expiry of existing PNB KCC Card.
10. Presently in Joint KCC accounts branches are required to obtain a mandate from other Co-obligants to issue a PNB Kisan Card in the name of one of the Co-obligants and to authorize him to operate the account on their behalf. On the same lines, in case of Joint KCC accounts, PNB Kisan ATM Card will be issued in the name of the authorized person.
PNB Kisan ATM Cards for Illiterate KCC Account Holders :
Apart from the above, a separate variant of PNB Kisan ATM Cards has been introduced primarily for illiterate customers, with the following salient features:
1. In case a KCC customer so wishes, he can be issued a PNB Kisan ATM Card irrespective of the fact as to whether he is illiterate or not.
2. These ATM cards will be enabled for use at PNB ATMs only on a PAN India basis.
3. These cards will not be valid for POS/e-commerce transactions.
4. These cards will have a daily cash withdrawal limit of Rs. 25000/- with a per transaction limit of Rs. 15000/-.
5. A card holder would be permitted to withdraw an amount upto the available DP within his sanctioned limit.
6. The PNB Kisan ATM Card may be Personalized or Non Personalized.
7. Stock of Non-personalized PNB Kisan ATM Cards will be held at designated branches. This stock of Cards and their PINs are sent in separate packets to branches is required to be maintained under dual custody as security documents.
8. Only one account would be linked to each card.
9. No Add on cards are permissible.
10. The PNB Kisan ATM Card to illiterate KCC account holders should be issued as a biometric card only.
11. These cards will be valid for 5 years subject to availability of sanctioned limit/ availability of DP, date of review and date of expiry of existing PNB KCC Card.
12. Presently in Joint KCC accounts branches are required to obtain a mandate from other Co-obligants to issue a PNB Kisan Card in the name of one of the Co-obligants and to authorize him to operate the account on their behalf. On the same lines, in case of Joint KCC accounts, PNB Kisan ATM Card will be issued in the name of the authorized person.
Important: Field functionaries to note that PNB Kisan Cards with a Master Card Logo on it’s face are POS enabled, while Kisan Cards without this logo are meant for use at PNB ATMs only.
Safeguards:
In order to ensure that operation through the ATM card is allowed only to the regular KCC holders, the following precautions may be taken:
1. PNB Kisan ATM Cards would be issued only in existing regular accounts/fresh accounts.
2. At the time of issuing the PNB Kisan ATM Card, it should be ensured that the next review date stands entered in the system. Date of review will be 12 months from the date of documentation and subsequently the limit shall be reviewed annually in such a way that the date of review in the 5th year will coincide with the date of expiry of the existing PNB Kisan card. To quote, in a KCC account opened on 01.01.2010 where PNB Kisan ATM Card has been issued on 01.11.2010, the date of first review will be 01.01.2011 and subsequently annual review will fall on 01.01.2012, 01.01.2013, 01.01.2014 and final review will be due on 01.01.2015 which will also be date of expiry of the PNB Kisan Card though PNB Kisan ATM Card would be valid upto 01.11.2015. However, the PNB Kisan ATM Card can be used only after renewal of the existing limit.
3. All the accounts will be reviewed annually by the Incumbent of the Branch to ensure satisfactory operation of the account. An inbuilt
mechanism through the system will be made available to prevent withdrawal through ATM after expiry of the review date till the account is reviewed by the Branch after ascertaining satisfactory operation of the account and ensuring that the next review date (12 months period) is incorporated in the system.
4. In order to ensure that the accounts remains regular, these accounts shall be monitored by the Incumbent Incharge/Concerned official closely on monthly basis and if there is any irregularity, corrective measures may be taken by the branch.
5. The dealing officer should educate the farmers to keep this card safely under his personal custody and also ensure that while using at POS, the card is swiped in his presence only.
A report giving the list of KCC accounts which are falling due for review in the ensuing month (Minimum one month in advance) will be made available through the system for which guidelines will be issued separately by the IT
Division. This will enable the Branches to keep these accounts under close Monitoring.
Operational guidelines for issuance of the PNB Kisan ATM Cards at branches are as under:
APPLICATION BY THE CUSTOMER AT BRANCH:
1. The PNB Kisan ATM Card is to be issued by the Base Branch only. While issuing PNB Kisan Cards, the branches may strictly follow this guideline. In case a PNB Kisan Card is issued by a non-base branch, all withdrawals taking place through such a card would be the sole responsibility of the issuing officials.
2. Similarly, only the base branch of a KCC Account holder can issue a duplicate Kisan ATM Card in case of need.
3. The eligibility of a KCC account holder is to be determined by its base branch.
4. An eligible KCC Account holder will fill in the application form furnishing all the information as desired and submit the same to the base branch. At the time of accepting the form, branch is to ensure that all relevant columns have been properly filled in.
Processing of PNB Kisan ATM Cards:
1. The PNB Kisan ATM Card can be issued either as a Personalized Card or as a Non-Personalized card.
2. As in case of other Debit Cards, the PNB Kisan ATM Card is to be issued through the DCARD menu in Finacle.
3. Non-Personalized Cards are to be issued through Card type option “C” as in case of all Non-personalized ATM / Debit Cards.
4. For Personalized PNB Kisan ATM Cards, the Card Type option is “K”.
5. All other processes and procedures to be followed in the DCARD menu in Finacle, as being followed for existing ATM / Debit Cards.
6. HO: TBD will provide the stock of Non-Personalized PNB Kisan ATM Cards to branches
on receipt of request. Branches may send request for the same to Head Office: TBD through e-mail at [email protected].
7. For personalized cards, branches will punch request through DCARD menu in Finacle. The same request will be downloaded at HO: TBD and processed, as incase of other Personalized Cards.
8. The Personalized Cards and their respective PINs will be sent to respective branches separately.
ACTIVATION OF PNB Kisan ATM CARDS:
1. For activation of Non-personalized PNB Kisan ATM Card, the concerned Branch will enter and verify the required data through DCARD menu in Finacle under Non-Personalized card using option ‘C’ in Type of card field, as in case of other Non-personalized Cards.
2. For activation of Personalized PNB Kisan Card, after receipt of the card and handing over the same to the concerned customer, the base branch is required to punch the request for activation in DCARD menu by running the “R” & “C” option.
3. This data shall be downloaded at Head Office, Debit Card Cell, under Transaction Banking Division and thereafter activation of the card would take place within 24 hours.
Other Important Points (Applicable for All Cards):
1. Hot listing of cards by Customers: In case of the card being lost / stolen / damaged, at the time of issuance of the card itself, the Customer be advised that in case of the any of the aforementioned eventuality, he may immediately call the Bank’s Call Center for hot-listing of the card. The Call Center functions 24X7 for all 365 days of the year. The Customer may also be advised to keep a note of his Card number and complete Account number and the Telephone Numbers of the Call Center for their own safety.
2. In case of Surrender of Cards: In case a customer wants to surrender his PNB Kisan ATM Card, an application may be obtained by the branch for the purpose, which must specify the reasons for the same.
An authorized official of the branch shall ensure that the card is cut into four pieces and details of the same are duly noted for future reference, and ensure that the destroyed card is immediately hot-listed through Bank’s Call Center.
3. Issuance of Duplicate Cards: In case a customer makes a request for a duplicate PNB Kisan ATM Card, the previous PNB Kisan Card be got hot-listed through the Bank’s Call center before issuance of the Duplicate card. Procedure / safeguard for issuance of duplicate card shall be the same as that when new PNB KIsan cards are being issued.
All branches are advised to submit indents for procurement of PNB Kisan ATM Cards as per their requirement. The indent may be sent in the following format over email to be sent to [email protected]:
Indent for PNB Kisan ATM cum Shopping Card (Not valid for illiterate Customers):
Sol Id
Branch Name
Circle Office
Whether Card is
No. of Cards
required to be used at POS terminal also.
required
Indent for PNB Kisan ATM Card (For use at PNB ATMs only):
Sol Id
Branch Name
Circle Office
Whether Card is meant for only illiterate customers.
No. of Cards required
Field functionaries are advised to make all out efforts to popularize the PNB Kisan ATM Card among the farmers and create awareness among them about the following benefits of frequent use of the card:
I. Farmer can withdraw cash from ATMs in a hassle free manner round the clock. This will obviate the necessity of carrying cash to the market for purchasing inputs, etc, as the funds can be withdrawn from the ATM near the
market / can be used at POS terminals in the market.
II. Farmers be encouraged to deposit the surplus funds in the account and hence save their interest cost.
III. Frequent operations in the account shall keep the account regular and farmers will be able to avail the benefit of interest incentive for prompt payment.
[22. Other details of the Scheme:
(i) Other details of operation of the Scheme like procedure for numbering of the Credit Card, usage of the card, monitoring of the card issued, action to be taken for loss/stolen cards and/or pass books, precautions to be taken by the Branch have been given in Appendix-VI.
(ii) The scheme also contains the following specimen documents:
S.N Specimen Number
1. PNB Kisan Card Application Received cum-disposal Register
PNB 1033
2. PNB Kisan Card * S-43
3. PNB Kisan Card Pass Book PNB 1034
4. Control Register for PNB Kisan Card issued
PNB 1035
5. Cash Withdrawal Voucher PNB 1036
6. Register for Cash Payment through PNB Kisan Card
PNB 1037
* Card has been made a non security Item but the branches will continue to use the existing card till the stock is exhausted and the new cards are supplied by Printing & Stationary Department.
(iii) Other guidelines issued by Head Office from time to time regarding production credit to farmers should also be complied with.
23. Supply of PNB Kisan Card:
(i) Requisition for supply of Kisan Cards may be made by the branches directly to the Printing & Stationery Deptt. who will supply the same to the branches. Cards are not to be kept at RMO/Lead Bank Office.
(ii) Numbering and lamination of cards should be got done at Card Issuing Branch level only.
24. Procedural Instructions:
(vii) Display at some conspicuous place in the branch, the salient features of KCC Scheme alongwith information regarding the requirements to be fulfilled for being eligible for KCC. Besides other features of KCC scheme It should be specifically mentioned that interest is paid by the bank on credit balance in the cash credit account at SF rate and KCC holders could deposit and withdraw any number of times within overall limit.
(viii) Applications complete in all respects may be promptly accepted and disposed of expeditiously.
(ix) Opening of Saving Bank A/c may not be made precondition for issue of KCC.
(x) Head Office guidelines for charging rate of interest on agriculture advances should be strictly adhered to. Interest on current dues should not be compounded.
(xi) Lead District Managers/Circle Heads, during their visit to Branches should ensure that Salient Features of KCC scheme and the requirements to be fulfilled for availing KCC facility are displayed properly.
(xii) The Internal Auditors of the Bank during inspection of the branches may comment on implementation of the above guidelines.
(xiii) Other guidelines regarding no due certificate, time schedule for disposal of loans, service area approach etc., given in the procedural guidelines for Agriculture Credit should be adhere to.
25. Takeover of KCC Accounts:
In terms of L&A Circular No. 134 dated 27.10.2009 (Clause No.26), it has been decided that in case of crop loans/KCC, the prior approval from next higher authority is not necessary even if the accounts from other banks/FIs have been adjusted within three months subject to the compliance of other takeover parameters and subject to the condition that only those accounts be taken over wherein there was no default in payment of interest/instalment during the last previous one year with the previous banker. All other guidelines in the matter shall remain unchanged.
26. Personal Accident Insurance Scheme (PAIS):
i. All the KCC holders are to be, invariably, covered under PAIS and the annual premium of Rs.15/- per KCC holder payable to the concerned Insurance Company under the said Scheme shall be shared by the bank and KCC holder in the ratio of 2:1. It
should be ensured that the borrower’s share of Rs.5/- is debited in the KCC holder’s account on the date of opening of KCC limit /disbursement in the account.
ii. Instances have come to our notice that in the eventuality of death of the KCC holder due to accident, claim could not be lodged/rejected by the Insurance Company as the KCC holder was not covered under PAIS. Bank has been put into embarrassing situation as the complaints have been lodged against the bank with RBI/NABARD/Ombudsman by the affected persons. Staff side cases are to be initiated in such instances.
iii. Details of PAIS Scheme have been given in the Appendix-VII, separately.
27. Crop insurance under Rashtriya Krishi Bima Yojana:
i. Rashtriya Krishi Bima Yojana is in operation for certain identified crops. Insurance cover, wherever available, should be obtained and insurance premium in this regard, provided as a part of crop loan, should regularly be remitted to Nodal Office for forwarding the
same to the respective insurance company, in time.
ii. Branches should strictly adhere to:
iii. Prescriptions of Agriculture Insurance Company of India Ltd. regarding maintenance of relevant records, etc., pertaining to implementation of the Rashtriya Krishi Bima Yojna under PNB Kisan Card Scheme.
iv. For loans given under PNB Kisan Card Scheme, branch should pass on the premia to Agriculture Insurance Company (AIC) as well as claims settled by AIC to the concerned farmers promptly.
v. Guidelines on the Rashtriya Krishi Bima Yojna are being circulated separately.
Check list for processing of crop loan proposals at branch level has been given at Appendix- VIII.
LIST OF APPENDICES:
Appendix-I : Guidelines for opening Account in CBS Appendix-II : Letter of Undertaking
Appendix-III : Letter of sanction
Appendix – IV : Letter of Intimation
Appendix – V : Sowing Season of Principal Crops in Major Sowing States.
Appendix – VI : PNB Kisan Card: Operational Guidelines.
Appendix-VII : Personal Accident Insurance Scheme (PAIS)
Appendix – VIII : Check List for Processing of KCC Proposals by Branch Offices
Appendix-I
REVISED KCC SCHEME - GUIDELINES FOR OPENING ACCOUNTS FOR CROP PRODUCTION/ WORKING CAPITAL FOR ALLIED ACTIVITIES AT 50% HIGHER LEVEL UNDER SCHEME CODE – CCAKC IN CBS:
All the Cash Credit limits being sanctioned under the revised KCC Scheme circulated by PSLB: HO vide their Codified Farm Credit Circular No. 17/11 dated 08.10.2011 for crop production/ working capital for allied activities at 50% higher than the limit arrived as per assessment, shall continue to be opened in CBS under scheme code – CCAKC and all the operative guidelines for opening of these guidelines in the system should be meticulously followed.
However, in view of the revised guidelines on sanctioning limits, for crop production/ working capital for allied activities, at 50% higher than the limit arrived as per assessment and fixation of ‘Operative Limit’ every year, special attention
should be given in assigning the ‘H – Limit History Details’ and following guidelines should be meticulously followed:
A. AT THE TIME OF OPENING OF ACCOUNT IN CBS:
For example, a farmer having credit requirement for crop production/ working capital for allied activities, of say Rs.100000/- is actually sanctioned a limit of Rs.150000/- i.e. at 50% higher level. As per guidelines, documents shall be executed for Rs.150000/-. Hence, while opening the account under scheme code – CCAKC, the following details should be entered in ‘H – Limit History Details’:
S – Sanction Limit Details:
· Sanction Limit : Assign the ‘Sanctioned Limit’ in this field e.g. Rs.150000/- in the above case
· Sanction Date : Enter the ‘Date of Sanction’
· Expiry Date : Since the KCC Card is issued for a period of 5 years, the expiry date should be 5 years from the ‘Sanction Date’
· Review Date : The CC limit sanctioned under KCC scheme is to be reviewed annually. Therefore, enter the ‘Review Date’ which will be 12 months from the ‘Sanction Date’
D – Drawing Power Details:
In the above example, the ‘Operative Limit’ is fixed at say Rs.100000/- for the 1st year, Rs.110000/- for the 2nd year and Rs.120000/- for the 3rd year and so on.
· Drawing Power Indicator : With the introduction of concept of ‘Operative
Limit’ the default value in this field has been fixed
As ‘M-User Maintained’ (instead of present set value of ‘E-Equal to sanction limit)
· Drawing Power : Based on the ‘Operative Limit’ fixed for the 1st year, values should be assigned by the user in this field, which is Rs.100000/- in the above example.
B. AT THE TIME OF ANNUAL REVIEW OF CC LIMIT:
At the time of annual review of the CC limit, the following modifications should be done by the branch EVERY YEAR in the ‘Limit History Details’ through menu option –ACLHM:
S – Sanction Limit Details:
· Review Date : In case limit is reviewed for another
period of 12 months, the review date should be modified accordingly as 12 months from the date of present review.
D – Drawing Power Details:
Based on the ‘Operative Limit’ fixed for the 2nd year, value in ‘Drawing Power’ field should be modified simultaneously. In the above example, the ‘Operative Limit’ applicable for the 2nd year is Rs.110000/- and the same should be assigned in this field and ‘Maintained’ in the account.
C. ACTUAL REQUIREMENT EXCEEDING PROPOSED 50% ENHANCEMENT:
In case during annual review, the actual credit requirement exceeds the proposed 50% enhancement and higher limit is sanctioned to the farmer, branches should modify the‘Sanction Limit’ through menu option – ACLHM appropriately after obtaining fresh document. This will also be applicable to the
higher limit sanctioned to the farmers under “Relaxed KCC Scheme” where production credit limit including consumption loan can be sanctioned up to Rs.10 lakh.
IMPORTANT: But, in case the production credit exceeds the prescribed KCC limit of Rs.10 lakh and credit has been provided under Kisan Sampuran Rin Yojna, the account should be opened under scheme code – CCAGR and NOT under scheme code – CCAKC.
Appendix-II
LETTER OF UNDERTAKING
The Manager,
Punjab National Bank,
BO:____________
Reg: Availment of agricultural production credit Under PNB Kisan Card
Whereas the undersigned applicant/s desires to avail the ‘Agricultural production credit’/ PNB Kisan Card limit under the PNB Kisan Card Scheme’ on the terms and conditions of sanction of the bank contained in ‘letter of sanction’ dated___________. The undersigned applicant/s hereby accepts and undertake/s to abide by the terms and conditions of sanction of the bank contained in the said ‘letter of sanction’ and also the terms & conditions given hereunder for agricultural production credit of Rs.___________________________________ (Rupees_____________________ under PNB Kisan Card Scheme of the Bank:
1. I/We understand that the CC limits as stated in the aforesaid ‘letter of sanction’ dated ___________are for the period of _____years only. I/We further understand that although bank has sanctioned me/us CC limit for Rs.________ only for raising crop (including consumption loan) and CC limit for Rs.____ only for Working Capital requirement for allied activities, however, I am/ We are eligible to avail only the respective operative limit/s for the said CC limit/s as stated in the said ‘letter of sanction’ dated _________until the same is / are enhanced subsequently by the bank at its sole discretion subject to the criteria stated in the ‘letter of sanction’ of the bank.
2. I/ We clearly understand that the sanctioned limit/s which is 50% higher than the eligible/ operative limit to which I/We are actually entitled would not be released automatically and cannot be claimed as a matter of right. Bank may at its sole discretion, release the sanctioned limit/s in stages by enhancing eligible/operative limit from time to time annually during the period of the loan/credit. Bank reserves the right to release the operative limits as per our eligibility in the
1st year, 2nd year, 3rd year and so on subject to the following:
(i) Annual review
(ii) Requirement for the higher limit.
(iii) Satisfactory utilization of the permitted operative limit.
(iv) Timely repayment of the bank’s loan.
(v) Payment of interest as applicable to the various corresponding operative limits.
3. That the advance/loan/credit taken/to be taken under the PNB Kisan Card Scheme shall be utilised for agricultural productive activities & domestic requirements and not for other purposes.
4. That the service charges under PNB Kisan Card Scheme shall be paid as prescribed by the bank from time to time.
5. That the Aggregate credits into the CC account(s) during 12 months period will atleast be equal to the maximum outstanding in the account. No drawal in the account would remain outstanding for more than 12 months. However, this condition may be relaxed in cases where
limit has been extended for growing long duration crops such as sugarcane, etc., or for agricultural activities where returns are expected after one year, but in no case any drawal in the account should remain outstanding for more than 18 months in such cases.
6. That at all time the pass book given/ to be given shall accompanied by PNB Kisan Card for identification for cash withdrawals and for entering the amount withdrawan etc. As the card to be issued/issued shall be valid for five years, the amount withdrawn will be entered in the pass book reducing the limit to the extent of amount withdrawn.
7. That PNB Kisan Card is the property of Punjab National Bank and it is not transferable. The bank reserves the rights to cancel the card at any time without any notice and without assigning any reason whatsoever.
8. That in case any information given in the loan application form is found false, the bank in its discretion, may refuse to advance/further advance and whole amount advanced, if any,
with interest and other charges shall become immediately recoverable by the bank.
9. That the bank may at its whole discretion refuse to honour the PNB Kisan Card in event of default and/or any other irregularity in operation of the aforesaid PNB Kisan Card limit account.
10. That the transactions in the account shall be secured by hypothecation of the crops and/or other moveable assets such as feed, fertilisers, pesticides, tools, equipments, etc., farm machinery & implements/household goods both present & future and mortgage of the agricultural land besides securities of mortgage of immovable properties and furnishing of personal guarantees/s as per aforesaid ‘letter of sanction’.
11. That in case PNB Kisan Card is lost or stolen, the card issuing branch shall be notified/informed immediately. The issuing branch shall re-issue card against indemnity bond duly signed after completion of necessary formalities. Charges for re-issue/ replacement
has been fixed Rs.50/- per card per reference as stated above.
12. That all costs of collection of dues, legal expenses and other charges shall be paid in case it becomes necessary to refer the matter to a collection agent or to the recourse to enforce payment or otherwise.
13. That the bank can exercise the right of lien and set off for recovery of any dues under PNB Kisan Card scheme.
14. That Recovery of dues under PNB Kisan Card Scheme shall be governed by the provision of Agricultural Credit and Miscellaneous Provisions Act of the _____________State.
15. That the PNB Kisan Card shall be returned against a proper receipt and not withstanding such return of card/termination, all dues to the bank arising out of and in connection with issue and utilisation of PNB Kisan Card shall be paid as and when demanded prescribed by the bank.
16. That the bank is entitled to add, alter and amend any of the above terms and conditions of PNB Kisan Card Scheme as it deems fit in its absolute discretion and without any notice and without assigning any reason whatsoever and the same shall be binding on me/us.
Thumb impression/Signature of the applicant
Name_____________
Address___________
Date: _____________Place: ____________
Appendix-III
LETTER OF SANCTION
Punjab National bank________________
Mr./Mrs./Ms.__________________________
Ref: Your loan application dated_______________for Rs._____________________ only for Agricultural production credit under PNB Kisan Card Scheme’ as in force at present.
With reference to your above loan application, we are pleased to inform that a loan of Rs.________ only has been sanctioned to you on the terms & conditions given hereunder and the terms and conditions of the bank contained in the standard loan documents of the bank for such loans:
1. LOAN AMOUNT SANCTIONED :
i. CC limit for raising crop (including consumption loan).Rs.________________only for period of _____years.
ii. CC limit for Working Capital requirement for allied activities Rs.___________ only for period of _____years.
iii. Term Loan Rs.___________ only for period of _____years.
However, your operative CC limit for raising crop (including consumption loan) will be Rs.__________________ only and operative CC limit for Working Capital requirement for allied activities will be Rs.____________________ only, out of the respective sanctioned CC limits above mentioned..
Bank may, at its sole discretion, if it deems fit, subsequently enhance the aforesaid operative CC limit/s annually during the period of said CC limit/s, linked to increase in scale of finance, change in cropping pattern, increase in land holding (owned/leased), etc., upto the maximum of above mentioned sanctioned limit of Rs______________ only for raising crop (including consumption loan) and sanctioned limit of Rs.__________ only for Working Capital requirement for allied activities subject to the following:
(i) Annual review
(ii) Requirement for the higher limit.
(iii) Satisfactory utilization of the permitted operative limit.
(iv) Timely repayment of the bank’s loan.
(v) Payment of interest as applicable to the various corresponding operative limits.
2. MARGIN________________________
3. RATE OF INTREST____________________
(In the regular Crop loan/KCC accounts on running balance outstanding upto Rs. 3 lakh Interest is 7% p.a. as per Govt. of India scheme)
4. REPAYMENT SCHEDULE:
(i) CC limit for raising crop (including consumption loan).________________
(ii) CC limit for Working Capital requirement for allied activities ___________
(iii) Term Loan ___________
5. SECURITIES:
(I) Primary Security_________
(II) Collateral Security__________
6. PERSONAL GUARANTEE/S
You are requested to call on us on any working day during office hours for completion of loan documents and other formalities for disbursement of the loan.
Yours faithfully,
MANAGER
Appendix-IV
LETTER OF INTIMATION
To
Shri___________________________
______________________________
______________________________
Dear Sir,
Subject: Your CC limit (for raising crop including consumption loan) Account No.____________ / CC limit (for Working Capital requirement for allied activities) Account No.____________ with us.
Please refer to the loan papers executed by you in respect of the limits referred to in the subject. In view of satisfactory operation of the aforesaid account, the operative limit in the account has been increased from Rs. _______________to Rs.__________________ under CC Limit (for raising crop including consumption loan) and from Rs__________ to Rs ___________ under CC limit (for Working Capital requirement for allied activities).
The other terms and conditions of the loan shall remain unaffected in so far as rights of the Bank and your obligations are concerned.
Yours faithfully,
FOR PUNJAB NATIONAL BANK I agree to the above.
MANAGER
BORROWER(S)
Place: ___________________ Place: ___________________
Date: ___________________ Date: ___________________
APPENDIX-V
SOWING SEASONS OF PRINCIPAL CROPS IN MAJOR GROWING STATES
Rice
Jawar
Potatoes
Potatoes
States
Bajra
Maize
Wheat
Gram
(winter)
(Summer)
Sugar-
Toba-
Ground-
Cotton
Jute
Autumn
Winter
Sum
Kharif
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Hills
Plains
Hills
Plains
cane
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May-
Apr.-
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Oct.-
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Feb- Jul
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Nov.-
Mar.
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May-
July-
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June-
Oct.-
Oct.-
Oct.-
Dec.-
July-
June-
Mar.-
-
-
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-
July
Sept.
Feb.
Aug.
Aug.
July
Dec.
Dec.
Feb.
Feb.
Aug.
July
July
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Mid
Mar.-
Apr.-
Oct.-
Oct.-
Feb.-
Oct.-
Apr.-
Feb-
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Feb- Jul
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Nov.
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May-
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land
May
July
- -- - - - - - - - -
Orissa
May-
June-
Dec.-
June-
June-
Oct.- -
Oct.-
July-
Feb-
Sept.-
June-
May-
-
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June
Aug.
Jan.
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July
Nov.
Nov.
Aug.
May
Oct.
July
June
Mar.-
Apr.-
West
June
June
Oct.-
Aprll-
Oct.-
Oct-
Sept.-
Dec.-
Sept.-
Mar.-
- --
-
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May-
June-
Feb.
June
Dec.
Nov.
Nov.
Apr.
Oct.
June
June
Aug.
,
Sept.--
Sept.-
Haryana
May-
June-
June-
June-
Oct-
Sept.-
Oct.
Oct.
Jan-
Sept.-
Feb.-
Nov.-
June-
May-
Aug.
- -July
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July
Dec.
Nov:
Jan.-
Dec.-
Feb.
Oct.
Apr.
Mar.
July
June
-
Apr.
Jan.
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June-
Apr.-
Oct.-
,Sept.
Jan.-
Apr.-
Mar.-
May-
June
Pradesh
July
-
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Feb.
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-May
June
- -
June
Jammu
June-
Apr.-
June-July
Mar-June
& -
Apr.-July
- - -
July
June
Oct-
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June-July
Sept-Oct.
March-June
Mar.-June
Feb.-Mar.
- - -
Kashmir
Nov.
-
Sept-Oct.
Sept
Sept
.- .-
Punjab
May-
June-
June-
June-
Oct.-
Sept.-
Oct.
Oct.
Jan.-
Sept.-
Feb.-
Nov.-
June-
May-
-
- -
-
Aug.
July.
Aug.
July
Dec.
Nov.
Jan-
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Feb.
Oct.
Apr.
Mar.
July
June
ADr.
Jan.
Uttar
May-
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Jan.-
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June-
June-
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Sept.-
Nov.-
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Sept-
Sept.-
Sept.-
Sept.-
May-
Apr.-
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Pradesh
July
Aug.
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July
Dec.
Nov.
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Oct.
Oct.
Oct.
Apr.
Feb.
July
June
July
June-
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Mar.-
June-
Dec.-
June-
Nov.
June
Aug.
Nov.
Oct.-
May-
May
June
JulyPr
adesh
May
Oct.
Feb.
Oct.
Dec.
Aug.
Oct.-
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-Nov.
- -June
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Oct.
Dec.
Rice
JawarPotatoes (winter)
Potatoes
States
Bajra
Maize
Wheat
Gram
(Summer)
Autumn
Winter
Sum-
Kharif
Rabi
HillsPlains
HillsPlains
mer
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May-.
Sept.-
June
Sept.
Sept.
July
Apr. June
July
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taka Aug. Oct.Feb.
JulyNov.
Aug.
Nov.
Nov;
Dec.
Jan[
May Jan.
Kerala
Apr.-Aug.-
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June Oct.Feb.
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Oct.-
Feb.-
June-
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Sept.-
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Dec.
Nov.
Dec.Nov.
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June-June- Se
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Oct.-
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June- ,
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Maha-
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Sept.-
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July
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July
Nov.-
Nov.
Nov.
Dec.
Rajasthan
July-June-
June-
June-
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Aug.Aug.
July
July
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Nov.
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Aug.-Mar.-
June-
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Sept.-
June-
Aug.
Sept.-
Sept.-
Feb.-July
Dec.-
All India
Aug. oct.Feb.
Aug.,
Dec.
Aug.
Oct.-
Dec.Dec.
Dec. -(Sowing)
May
Dec.
(Sowing)
APPENDIX – VI
PNB KISAN CARD: OPERATIONAL GUIDELINES
1. Opening of account:
(i) Cards will be issued only after completion of documents. With the issuance of KISAN CARD, cash credit account/term loan account will be opened in the name of the card holder for recording transactions under Kisan Card. Sanction letter will be issued after allotment of number and lamination of the card and handed over to the farmer alongwith the credit card and pass book under receipt.
(ii) The Kisan Card and the pass-book issued to a farmer shall bear the same serial number.
(iii) The cards will be supplied to the branches directly by the Printing & Stationery Department on receipt of requisition. Blank Cards & Pass Books are not security items. Cards
are to be kept at the branches only and not at LBOs/RMO.
(iv) Opening of Account in Joint names under PNB Kisan Card Scheme has also been allowed by Competent Authority. In this regard, branches are required to obtain mandate from the other Co-obligants to issue the PNB Kisan Card in the name of one of the Co-obligants and to authorize him to operate the account on their behalf. Specimen of the mandate duly approved by Law Division, Head Office is enclosed as Appendix VI (a), which shall be signed by the other Co-obligants to authorize a single person to operate the account.
Further, it is informed that at Page 2 of the Hypothecation Agreement PNB-1041, amendment is to be made in column (a) by incorporating the name of the scheme. The amended column (a) is given as under:
"Cash Credit at any time upto limit of Rs._______________ (Rupees_____________________________________ only) under PNB Kisan Card Scheme.”
It is pertinent to obtain signatures of the farmers on the left hand side margin where the name of the scheme is added by hand.
2. Procedure for Numbering of the Credit Card:
(i) The number will consist of two parts. The first part will indicate branch code number. The secon part will indicate the running serial number of the credit card for the issuing branch. Each part will be separated from other by a front slash.
/
/
_______________________________________
Branch Running Serial
Code Number
(ii) PNB Kisan Card will be supplied to the branches by the Printing & Stationery Department. On sanction, the card issuing branch will fill up the complete information in the card including its number, get it laminated
(to make it tamper proof) and put it in plastic jacket before delivering to the farmers.
3. Usage of the Card:
(i) The card holder will be free to draw eligible amount of cash for round sum of Rs.1000/- or multiples thereof within his available cash credit limit from the card Issuing Branch. At the time of cash withdrawal, the card holder will present his card alongwith the pass book. Both the items have to be presented together for a valid transaction to take place.
(ii)
