New Delhi, April 06: The Reserve Bank has directed urban cooperative banks not to treat the accounts of the farmers covered under the Debt Relief Scheme as bad if they agree to repay 75 per cent of due by June 30, 2010.
The RBI directive follows the government decision, announced in the Union Budget 2010-11, to extend by six months the last date of payment of 75 per cent debt due from farmers under the relief scheme to June 30, 2010.
“Where the farmers covered under the Debt Relief Scheme have given the undertaking, agreeing to pay their share under the OTS (one time settlement), their relevant accounts may be treated by banks as standard/performing…,” the Reserve Bank said in a statement.
It said banks should make adequate provision for the loss in present value (PV) terms for all receivables due from the borrowers.
–Agencies