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 KISAN SAMADHAN CARD
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14. REVIEW OF ACCOUNT:
a) The annual review of accounts should be done before due date as per extant guidelines.
b) However, exercise of reduction / enhancement of limit required is to be done once in 3 years.
c) In case if any borrower requires higher investment than already sanctioned, Branch should review the account for additional limit considering the techno economic viability as and when necessary even the date for review exercise is not due.
15. SUPERVISION / FOLLOW-UP:
a) Branches have to conduct pre and post sanction inspection from time to time as per extant guidelines and satisfy about end use of funds.
b) In case of loans towards vehicles such as tractors, trucks, tempos, jeeps, motorcycles, etc., registration of Bank’s charge in the records of RTO and in the RC books is mandatory.
c) After acquiring the assets, borrowers need to submit copies of bills / receipts to the Branch or else the Branch should collect the same during post sanction inspection and keep on record.
d) Monitoring of account should be done on regular basis, by verifying operations in the account.
e) Assets should be insured comprehensively and insurance policy should be renewed before due date.
16. OTHER INCENTIVES / BENEFITS:
a) Concession in rate of interest of 0.50% p.a. on the applicable rate will be available to -
i) Kisan Credit Card holders whose account is conducted satisfactorily for last three years and being issued Kisan Samadhan Card.
ii) Kisan Samadhan Card holders whose account is conducted satisfactorily for two years.
b) Crop Insurance for notified crops in notified area.
c) Personal Accident Insurance Scheme for the card holder (like in KCC).
d) The farmers covered under Kisan Samadhan card will be allowed for automatic over limit of 10% over and above the working capital limit enjoyed by them to meet the uncertainties associated with agricultural business and to derive maximum benefit. Such overlimit so allowed should be repaid within a maximum period of 30 days.
17. ISSUANCE OF KISAN SAMADHAN CARD:
a) The farmer borrower will be issued a laminated credit card and a passbook incorporating the requisite details like name of the Branch, Borrower’s name, address, facilities sanctioned and periodicity of card/plan. The passbook would contain the repayment schedule of the term loan.
b) The passbook facilitates recording of the transactions on an ongoing basis. The card holder would be required to produce the card and the pass book whenever cash is withdrawn from other identified Branches.
c) The serial number of the card should start with Alfa Code of the Branch followed by borrower serial number. Example: 5500/01. The first four digits are representing identification of the Branch which has issued the card and the second part consisting of two digits is representing serial number of card issued by the said Branch.
18. APPLICATION FORM:
a) For production credit and investment credit limit under agricultural activity, a Bio-data-cum-Application form is introduced.
b) For various investment purposes, the extant activitywise annexures provided alongwith the application are to be utilised.
19. PROPOSAL AND COMPUTATION OF LIMIT:
a) Existing proposal form is to be used.
b) For calculation of Credit Limits based on average net income, value of securities, etc. under Kisan Samadhan Card, a computation sheet with four annexures is designed and the details of annexures are as under:
Annexure ‘A’: This should be used for computing anticipated net income and average income for three years for the present. After gaining experience, Branches may plan for five years or more.
Annexure ‘B’: This format has been designed for computing value of land to be mortgaged and self liquidating securities to be charged to the Bank for availing various credit facilities.
Annexure ‘C’: This annexure provides for computing all securities and lines of credit based on farm income, non-farm income and also periodicity of charging rate of interest and repayment schedule.
Annexure ‘D’: This format is to be used for computing production line of credit including consumption loan and working capital requirements for allied activities, maintenance of tractor and other farm machinery, etc.
20. OPERATION OF CREDIT LIMITS:
A. Production Line of Credit through Composite Cash Credit Account (one account).
B. Investment Line of Credit through Loan Accounts (maximum three accounts).
i) Loan account for term activities like land development, minor irrigation, farm machinery, draught animals, etc. where repayment is linked to crop harvesting / marketing of produce.
ii) Loan account for allied activities like dairy, poultry, apiculture, etc. undertaken on commercial basis (self liquidating) where repayment is not dependent/linked to crop income.
iii) Loan account for personal loan (maximum Rs.1.00 lakh) where interest is to be applied on monthly basis but repayment to be linked to marketing of crops. However, compounding of interest is to be done only after due date.
C. Emergency Loan (maximum Rs.50,000/=) through a separate loan account.
21. CASH WITHDRAWALS FROM IDENTIFIED BRANCHES:
a) Branches should identify two Branches preferably from the nearby Taluka/District Headquarters and report the same to Zonal Office. Zonal Office should arrange to circulate the list of Nodal (Card Issuing) Branch and identified Branches from where the cash withdrawals are to be allowed within the Zone so that the borrowers are not put to any inconvenience.
b) In case of Branches located on State/District borders and cash withdrawal arrangement is required to be made with the adjoining Branches which are falling within the jurisdiction of other Zone, the Zonal Offices should write to the neighbouring Zonal Office in the matter to give suitable instructions to the Branches in their Zone.
c) Zonal Office should send a copy of Nodal Branch and its identified adjoining Branches where cash withdrawal arrangements have been made for Head Office record and also issuing instructions to other Zones wherever necessary.
d) Timely and proper reconciliation of entries is utmost important. Zonal Offices should confirm the arrangements.
e) The Branches which are paying the cash should invariably make entry in the pass book as and when cash payments are allowed and ensure that the payments are made within the sanctioned limit (production limit).
22. OTHER OPERATIONAL GUIDELINES:
Limits under Kisan Samadhan Card will be discontinued / reduced –
i) Production Line of Credit - If the credit summation during a year is less than the limit enjoyed in the cash credit account.
ii) Investment Line of Credit - If there is default in meeting the repayment terms.
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