Registered No. WBISC-247
3.olkata ASVINA 9] @vj?
Extraordinary Published byAuthority TUESDAY, OCTOBER I, 2024 No. WB(Part-1)/2024/SAR-574 [SAKA 1946
PART I-Orders and Notifications by the Governor ofWest Bengal, the High Court, Government Treasury, etc.
GOVERNMENT OFWEST BENGAL Cooperation Department New Secretariat Buildings, Block-A, 4 Floor, 1, K. S. Roy Road, Kolkata-700001 NOTIFICATION No. 1196-Coop, Dated, 20.09.2024 - The Governor, in supersession of all earlier notifications on the subject, is pleased hereby to make, the following Crop Loan Rules for the Short Term Co-operative Credit Structure.
CROPLOAN RULES for STCCS, W.B.-2024 a 1) Short title, Applicability and Commencement
(a) These Rules shall be called Crop Loan Rules for the Short Term Co-operative CreditStructure,est Bengal -2024 (Crop Loan Rules for STCCS, WB-2024);
wee
(b) Dispensation ofCrop Loans for financing Seasonal Agricultural Operations by the Short Term Co-operative Credit Structure, West Bengal, shall be governed by these Rules;
(c) The Rules shall come into force on the date oftheir publication in the Official Gazette.
2) Definitions : In these Rules, unless there is anything repugnant in the subject or context :
(a) The "Act" means the West Bengal Co-operative Societies Act, 2006, as amended from time to time and the rules framed thereunder. The definitions as specified in Section 4 oftheAct shall be construed to be incorporated in these rules.
(b) "Agriculture" includes farming, plantation & horticulture, apiculture, floriculture, animal husbandry, forestry, dairy and poultry, pisciculture, and other allied activities, whether or not undertaken jointly with agriculture and the expression "agricultural operations" shall be construed accordingly. Explanation: For the purposes of this clause, "pisciculture" includes the development offisheries, inland, brackish and marine, catching offish and all activities connected therewith or incidental thereto. 1
(c) "Central Financing Agency (CFA)" means a Central Co-operative Bank which is the principal Co-operative society in a district ofthe State ofWest Bengal that includes part ofsuch district or other district, the primary object ofwhich is the financing of other Co-operative societies in the area so covered by it and includes Regions ofThe West Bengal State Co-operative Bank Ltd.
2 THEKOLKATAGAZETTE,EXTRAORDINARY, OCTOBER 1, 2024 [PARrI
(d) Crop means products of agriculture, as defined in 2(B) and also includes other cash crops.
(e) Crop Loan means and includes the Short Term Production Credit given by the Short Term Co-operative Credit Structure, West Bengal for financing Seasonal Agricultural Operations to raise crops as defined above and includes eligible expenses towards benefit ofCrop Insurance, Assets Insurance, PersonalAccident Insurance Scheme (PAIS), Life Insurance and Health Insurance.
(f) Joint Liability Group (JLG) means and includes an informal Group of4 to 10 individuals, but can be up to 20 members under special circumstances, coming together for a specific purpose including for the purpose of availing institutional finance under joint liability in the form of mutual undertaking / joint and/or several personal guarantees. The JLGs can be formed primarily consisting of tenant farmers and small farmers cultivating land without possessing proper title oftheir land/ rural entrepreneurs engaged in non-farm activities.
The JLG members are expected to engage in similar type of economic activities like crop production. The management ofthe JLG should be with simple financial administration within the group. The JLGS members can also serve as a conduit for technology transfer, facilitating common access to market information for training and technology dissemination in activities like soil testing, training, health camps and assessing input requirements.
• A basic requirement forjoint-liability security forBank loans is that the farmers concerned, form themselves into groups ofpeople who know and trust each other. These groups may normally vary in size from a minimum of4 to a maximum of IO farmers depending on the need and circumstances;
• Each year the group members who want to borrow for seasonal production costs sign a contract in which they accept liability not only for their own individual loans, but also for the loans borrowed by other members oftheir group. Hence the term 'joint-liability'.
• The loans are advanced by the CFAs through PACS to individual farmers or to the group collectively.
The amounts borrowed by each person depend on his or her individual needs, subject to a maximum of certain prescribed amount in the policy which can be borrowed with this form of security.
• The JLGS should necessarily comprise the farmers or entrepreneurs (undertaking production of the same crops or group of crops or undertaking non-farm activities to ensure cohesive functioning and facilitate procurement of inputs, processing, marketing, etc.)
• All the members ofthe JLG should be residing in the same village / compact area and not drawn from different / distant places.
JLGModels The CFAs can finance JLG by adopting any ofthe two models. Model A Financing Individuals in the Group: Model B - Financing the Group :
The JLG can be motivated to keep their monthly deposit in a savings account like SHG but the credit linkage will not depend on amount ofdeposit mobilised.
Credit Assessment The JLG would prepare a credit plan for its individual members and an aggregate ofthat is submitted to the CFAs through the PFAS. The individual members of JLG would be eligible for bank loan after the bank verifies the individual members' credentials.
Purposes of credit The finance to JLG is expected to be a flexible credit product addressing the credit requirements of its members including crop production, consumption, marketing and other productive purposes. The CFAs may consider cash credit, short-term loan or term loan depending upon the purpose of loan.
g) 'Kisan Credit Card' (KCC) means the credit delivery mechanism to meet the production credit requirements ofthe farmers in a timely and hassle-free manner subject to norms and guidelines in vogue in the Short Term Co-operative Credit Structure, West Bengal. The CFAs may determine the validity period ofKCC and its periodic review following the circulars/ norms issued by NABARD from time to time. The reviewmay result in continuation ofthe facility, enhancement ofthe limit or cancellation ofthe limit/ withdrawal ofthe facility, depending upon increase in cropping area / pattern and performance of the borrower. It is a credit support from the banking system under a single window to the farmers for their cultivation & other needs as indicated below:
PART I] THEKOLKATAGAZETIE,EXTRAORDINARY, OCTOBER 1, 2024 3 a. To meet the short term credit requirements for cultivation of crops b. Post-harvest expenses c. Produce marketing loan d. Consumption requirements of farmer household e. Working capital formaintenance offarm assets and activities allied to agriculture, like dairy, fishery etc.
f. Investment credit requirement for agriculture and allied activities like agricultural implements, dairy animals etc.
Note: The aggregate of components 'a' to 'e' above will form the short term credit limit portion and the aggregate of components under 'f will form the medium/long term credit limit portion.
Following shall be eligible for issuance ofthe KCC: i. All Farmer members of PFA-(a) Individuals / Joint borrowers who are owner cultivators, ii. Tenant Farmers, Oral Lessees & Share Croppers, iii. SHGS or Joint Liability Groups ofFarmers including tenant farmers, share croppers etc.
The validity period ofKCC shall be primarily for 5 (five) years and it may be renewable for consecutive periods of 5 (five) years at the end of each validity period, subject to fulfilment ofKYC norms and requisite documentations at PFA level. The activity status ofKCC shall be categorized as :
• Active/ Operative KCC : At least one loan transaction made during the last crop loan year (including short and other term loans).
• Inoperative KCC : No transaction made for a period of over one year the card was current (including short and other term loans).
• Dormant KCC: No transaction made during the last five years (including short and other term loans).
(h) Primary FinancingAgency (PFA)means and includes all the PrimaryAgricultural Credit Co-operative Societies, which are primarily carrying out the business ofadvancing Short, Medium and Long TermAgricultural Loans to the individuals, SHGs and JLGs.
(i) Repayment Period may be the period of time that is fixed under these rules as Annexure 'A' as per the anticipated harvesting and marketing period for the crops for which a loan has been granted. Provided that in case of any crop not covered in the Annexure 'A' would be determined by the SFA in consultation with the concerned CFA/CFAS. Provided further that the SFA will be entitled to make suitable changes in respect of time schedule ofdisbursement and recovery ofCrop Loans as set out in the Annexure 'A' to these Crop Loan Rules, if the situation warrants.
@) Scale ofFinance (SOF) for each crop shall be prepared in the meeting ofrespective District Level Technical Committee (DLTC) and submitted to State Level Technical Committee (SLTC) for acceptance ormodification and determination ofthe same by circular, as provided in the Guidelines ofNational Bank forAgriculture and Rural Development (NABARD) and shall be ordinarily valid for a period offive (5) years provided that such Scale ofFinance (SOF) shall be reviewed every year and ifnecessary the same shall be revised. If the Scale ofFinance of any crop is not covered by the decision ofthe DLTC, the concerned CFA may refer the matter to the SFA for its determining the Scale ofFinance for the particular crop in consultation with the SLTC for a period till the next meeting ofthe DLTC.
Note : Scale offinance for alternative & progressive farming, like SRI, to reduce the cost of cultivation may be prepared to reduce the burden on farming and help the farmers to get higher spread on sale ofproduce.
(k) Short Term Co-operative Credit Structure, West Bengal (STCCS, WB) shall mean and include The West Bengal State Co-operative Bank Ltd., its Regions and the Central Co-operative Banks and their affiliated Primary Co-operative Agricultural Credit Societies (PACS).
(1) State FinancingAgency (SFA) means The West Bengal State Co-operative Bank Ltd.
(m) Unless otherwise specified in these Rules :- i) Words imparting the masculine gender include the feminine Gender;
ii) Words in the plural include the singular and vice-versa;
iii) The word 'person' includes any association or body of persons, Corporate or otherwise.
THE KOLKATAGAZETTE, EXTRAORDINARY, OCTOBER 1, 20244 [PARrI -py iv) With reference to a person who is unable to write his name, the word 'Signature' shall include his thumb impression or other mark duly attested to signify his signature.
v) Words and expressions used in these Crop Loan Rules but not defined hereinabove and defined in the 'Act' and the Rules framed thereupon, as amended from time to time, shall have the same meanings as are respectively assigned to them therein or The General Clauses Act.
3) These Rules shall be applicable to the Short Term Co-operative Credit Structure, West Bengal (STCCS, WB) as a whole providing short-term production credit for financing Seasonal Agricultural Operations towards raising various crops. These will also be applicable to Crop Loans purveyed by the CFAs through SHGs, JLGS to the extent applicable in each case.
4) The Primary FinancingAgency shall prepare a Credit Limit Application in the prescribed format as per target fixed underDevelopmentAction Plan / Business Development Plan or any other action plan adopted by the PFA covering the total credit needs of its members, both old and new, for cultivation ofcrops at least 2 months before the end of the financial year, provided that the maximum credit ofthe member shall be determined by the Board ofthe PFA in such a manner as it may think fit subject to the condition that the amount ofmaximum credit shall not exceed the amount required by him to cultivate the total area ofland proposed to be cultivated in accordancewith the procedures laid in these rules. The PFAS shall also prepare Supplementary Credit Limit Application in cases of :- a) change in the Scale ofFinance, b) inclusion of new members and c) change in the area ofholding ofcultivable land to be cultivated by any member.
The PFAS will ensure coverage ofall the existing members carrying on Seasonal Agricultural Operational (SAO) activities under the Credit Limit Application. The PFAs will also ensure enrolling agricultural household not yet covered under their membership as new members and prepare Credit limit for them for extending Crop Loans and other loans as per their credit needs. The Ceiling ofCrop Loan per individual will be Rs.3,00,000/- (Rupees three lakh) only, taking all crop loans together on a particular day ofa year (outstanding limit), even ifall the sub-limits of the different crops taken together exceed such limit. KARBARNAMA (Mortgage Deed) shall be executed between the PFA and each borrower covering the borrower-wise Credit Limit as sanctioned.
In cases whereKARBARNAMA (MortgageDeed) cannot be executed, a declarationmay be obtained in the specified form from each borrower as per procedures laid down in Section 54 or 55 ofWest Bengal Co-operative Societies Act, 2006 and corresponding Rules thereof, covering the borrower-wise Credit Limit as sanctioned.
5) Fixation ofcredit limit / Loan amount The credit limit under the Kisan Credit Card may be fixed as under :
5.1. All farmers other than marginal farmers: 5 .1.1. The short term limit to be arrived for the first year : for farmers raising single crop in ayear: Scale of finance for the crop (as decided by State Level Technical Committee) x Extent of area cultivated+ 10% of limit towards post harvest/household/consumption requirements + 20% of limit towards repairs andmaintenance expenses offarm assets+crop insurance and/or accidental insurance including PAIS, life insurance, health insurance and asset insurance. There would be personal guarantee ofthe borrower in all cases except in the cases offinancing in Joint Liability Mode where Joint and several personal Guarantees ofall the members of the Group would have to be furnished.
5.1.2. Limit for second & subsequent year:
a) Ifthere is no SLTC Meeting during the year.
• First year limit for crop cultivation purpose arrived at as above plus 10% ofthe limit towards cost escalation may be allowed during the second year.
• The same methodology may be adopted for every successive year if the SLTC is not held during the particular year.
b) Ifthe DLTC reviews the Scale ofFinance during any year and no escalation is proposed to SLTC who is ofthe same opinion that there is no need for escalation First year limit for crop cultivation purpose arrived at as above plus 10% ofthe limit towards cost escalation / increase in scale of finance for every successive year (28, 3%, 4 and 5" year) and estimated Term loan component for the tenure ofKisan Credit Card, i.e., five years.
PART I] THEKOLKATAGAZEITE,EXTRAORDINARY, OCTOBER 1, 2024 5 5 .1.3. For farmers raising more than one crop in a year, the limit is to be fixed as above depending upon the crops cultivated as per proposed cropping pattern for the first year and an additional 10% ofthe limit towards cost escalation / increase in scale of finance for every successive year (2d, 3%, 4h and 5" year). It is assumed that the farmer adopts the same cropping pattern for the remaining four years also. In case the cropping pattern adopted by the farmer is changed in the subsequent year, the limit may be reworked.
5 .1.4. In respect of Term loans for investments towards land development, minor irrigation, purchase of farm equipment and allied agricultural activities, the CFAs may fix the quantum ofcredit for term and working capital limit for agricultural and allied activities etc. based on the unit cost of the asset/s proposed to be acquired by the farmer, the allied activities already being undertaken on the farm, the bank's judgment on repayment capacity vis-a-vis total loan burden devolving on the farmer, including existing loan obligations.
5.1.5. The long term loan limit is based on the proposed investments during the five year period and the bank's perception on the repaying capacity ofthe farmer.
5 .1.6. Maximum Permissible Limit : The short term loan limit arrived for the 5th year plus the estimated long term loan requirement will be the Maximum Permissible Limit (MPL) and treated as the Kisan Credit Card Limit.
5 .1.7. Fixation ofSub-limits for other than Marginal Farmers :
i. Short term loans and term loans are governed by different interest rates. Besides, at present, short term crop loans are covered under Interest Subvention Scheme/ Prompt Repayment Incentive scheme. Further, repayment schedule and norms are different for short term and term loans. Hence, in order to have operational and accounting convenience, the card limit is to be bifurcated into separate sub limits for short term cash credit limit cum savings account and term loans.
ii . Drawing limit for short term cash credit should be fixed based on the cropping pattern and the amounts for crop production, repairs and maintenance offarm assets and consumption may be allowed to be drawn as per the convenience of the farmer. In case the revision of scale of finance for any year, finalised by the state level committee exceeds the notional hike of 10% contemplated while fixing the five year limit, a revised drawal limit may be fixed and the farmer be advised about the same. In case such revisions require the card limit itselfto be enhanced (4" or5 year), the same may be done and the farmer be so advised. For term loans, instalments may be allowed to be withdrawn based on the nature of investment and repayment schedule drawn as per the economic life ofthe proposed investments. It is to be ensured that at any point oftime the total liability should be within the drawing limit ofthe concerned year.
iii. Wherever the card limit / liability, so arrived at warrants additional security, the banks may take suitable collateral as per their policy.
5.2. ForMarginal Farmers :
A flexible limit ofRs.10,000 to Rs.50,000 be provided (as Flexi KCC) based on the land holding and crops grown including post-harvest warehouse storage related credit needs and other farm expenses, consumption needs, etc., plus small term loan investments like purchase offarm equipment, establishingmini dairy/backyard poultry as per assessment ofBranch Manager without relating it to the value of land. The composite KCC limit is to be fixed for a period offive years on this basis. There would be personal guarantee ofthe borrower in all cases except in the cases offinancing in Joint Liability Mode where Joint and several personal Guarantees of all the members ofthe Group would have to be furnished.
Wherever higher limit is required due to change in cropping pattern and/or scale offinance, the limit may be arrived at as per the estimation indicated at para 5.1.
THE KOLKATAGAZETTE, EXTRAORDINARY, OCTOBER I, 20246 [PART I -'yy 6) Advances up to Rs. 3.0 lakh against pledge/hypothecation ofagricultural produce (including warehouse receipts) for a period not exceeding 6 months, irrespective of whether the farmers were given crop loans for raising the produce or not, will be considered as Agricultural Loan, Direct Finance and be extended through KCC. In this connection the extant law for maximum hoarding is required to be maintained.
7) Loans to distressed farmers indebted to non-institutional lenders, against appropriate collateral or group security shall also be considered as Agricultural Loan, Direct Finance and be extended through KCC.
8) Interest Subvention/Incentive for prompt repayment as advised by Government of India and / or the State Government. The CFAs will make the farmers aware of this facility. The PFAS will take the responsibility ofuploading farmer's data and claim data in respect of both interest subvention(IS) and Prompt Repayment Incentive (PRI) in portal ofGovt ofIndia for this purpose and the Bank will approve the IS claim first and then the PRI claim.
9) Besides the mandatory crop insurance, the KCC holder shall have the option to take benefit ofAssets Insurance, Personal Accident Insurance Scheme (PAIS), Life Insurance and Health Insurance (wherever product is available) and have premium paid through his KCC account. Necessary premium will have to be paid on the basis of agreed ratio between CFA and farmer to the insurance companies from KCC accounts. Farmer beneficiaries should be made aware ofthe insurance cover available and their consent (except in case of crop insurance, it being mandatory) is to be obtained, at the application stage itself.
10) The Credit Limit Application ofeach individual orjoint KCC holder shall be submitted by the Primary Financing Agency in a composite form in a prescribed format, either in physical format or in e-filing format with the recommendations ofthe Area Supervisor ofthe Central FinancingAgency and the Block Inspector ofCo-operative Societies within the time limit as stipulated herein below.
11) PFA shall recommend Credit Limit for any individual orjoint KCC holder for sanction by CFA but loan shall not be disbursed by PFA unless overdue has been repaid in full.
12) The SFA and the CFAs will be at liberty to formulate and fix up their loaning procedures and norms in conformity with these Crop Loan Rules. At the time ofappraisal ofcredit limits for intending borrower members ofPFA, credit scores available at Credit Information Companies (CICS) for those borrower members may be considered by CFA (as per policy approved by Board ofDirectors) and credit history along with personal data available forthe borrowers may also be uploaded in the portal ofCICs. Processing charges may be charged on actual basis.
13) The credit limit sanctioned shall remain valid for a period of5 years and in case ofany upward change in Scale ofFinance the Primary Financing Agency may apply for sanction ofadditional amount to meet the increased requirements. The PFAwill be required to obtain in this case individual/ JointApplication from the concerned members for additional financial accommodation, and also to complete the required documentation formalities in due course before drawal of fund as per the increased Scale ofFinance.
14) One time documentation at the time offirst year of loan and thereafter simple declaration (about crops raised/ proposed) by farmer from the second year onwards. Members of PFA shall furnish following documents for the purpose ofavailing loans from PFA:
• KYC - mandatory for all types ofKCC holders at the time ofissuance ofKCC.
• This includes passport size photo, mobile number, copy ofAadhaar Card (mandatory for availing benefits oflnterest Subvention Scheme) and Electronic Photo Identity Card (EPIC) (mandatory for uploading farmers' details to Bangla Shasya Bima portal). PAN is mandatory for withdrawal of amount Rs 50,000/- and above in a single transaction. PFA shall make necessary effort for updating KYC documents time to time as per prevailing guidelines in this aspect.
• Copy ofRecord of Land (mandatory for those who intend to avail credit limits as per existing SOF).
• Declaration under Section 54 or 55 ofWBCS Act, 2006 as the case may be.
PART!] THE KOLKATAGAZETTE, EXTRAORDINARY, OCTOBER 1, 2024 7 1 ' I, 15) The Crop Loan Year will be reckoned from the 1st April of a year to the 31st March next, and every effort shall be made by all concerned to complete the formalities well ahead to ensure timely flow of credit at all levels. The STCCS, WB would follow the following Time Schedule in the matter ofreceipt, preparation and submission ofCredit Limit Applications and sanction ofCredit Limits :
(a) Submission ofCredit Limit Application by PFA to CFA by January-end.
(b) Sanction ofCredit Limits by CFA in favour ofthe PFAS - by February-end.
(c) Submission ofCredit Limit (Refinance) Application by CFAs to the SFA by March-end.
(d) Submission ofCredit Limit (Refinance) Application by the SFA to NABARD byApril-end.
16) The Primary FinancingAgency shall obtain loan bond and other documents from the borrowermembers in duplicate and will submit one copy to the concerned branch ofthe CFA and will hold the same as a custodian of the bank and submit a declaration in a prescribed format to that effect.
17) The short term component of the KCC limit is in the nature of revolving cash credit facility. There should be no restriction on the number ofdebits and credits. The drawing limit for the current season/ year could be allowed to be drawn using any ofthe following delivery channels :
(a) Operations through branch
(b) Operations using Cheque facility Withdrawal through Rupay Kishan Cards / Aadhaar enabled Rupay Kishan Cards designed by the National Payments Corporation oflndia (NPCI) from the POS / MicroATM ofthe PACS orATM ofany other bank; Mobile Banking with IMPS capabilities/IVR /Aadhaar enabled Cards.
Operations through PACS acting as ultra-thin branches.
PFA should seek Refinance from CFAwithin one month from the date ofdisbursement ofloans to its members, ifRuPay Kisan Cards / Aadhaar enabled Kishan Cards designed by the NPCI and operated through PACS acting as ultra-thin branches using POS / Micro ATM or any other device approved by the NPCI is not in operation in that particular PFA.
Mobile Banking/Other Channels :
Provide Mobile banking functionality for KCC Cards / Accounts as well along with Interbank Mobile Payment Service (MPS ofNPCI) capability to allow customers to use this inter operable IMPS for funds transfer between banks and also to do merchant payment transactions as additional capability for purchases of agricultural inputs.
This mobile banking should ideally be on Unstructured Supplementary Data (USSD) platform for wider and safer acceptance. However, the banks can also offer this on other fully encrypted modes (application based or SMS based) to make use ofthe recent relaxation on transaction limits.
Banks can also offer unencrypted mobile banking subject to RBI regulations on transaction limits.
It is necessary that Mobile based transaction platforms enabling transactions in the KCC use easy to use SMS based solution with authentication thru' MPIN. Such solutions also need to be enabled on IVR in local language to ensure transparency and security. Such mobile based payment systems should be encouraged by all the banks by creating awareness and by doing proper customer education.
With the existing infrastructure available with banks, all KCC holders should be provided with any one or a combination ofthe following types of cards :
• Debit cards (magnetic stripe card with PIN) enabling farmers to operate the limit through all banks ATMs / Micro ATMs • Debit Cards with magnetic stripe and biometric authentication.
• Smart cards for doing transactions through POS machines held by Business Correspondents, input dealers, traders and Mandies.
• EMV compliant chip cards with magnetic stripe and pin with ISO IN.
(c)
(d) % M N J (e) ,,.
·, ' l 1 r $ 8 THEKOLKATAGAZEITE,EXTRAORDlNARY, OCTOBER 1, 2024 [PARrI In addition, the banks having a call centre / Inter active Voice Response (IVR), may provide SMSa4 mobile banking with a call back facility from bank for mobile PIN (MPIN) verification through IVR, thus making a secured SMS based mobile banking facility available to card holders.
18) Any Core Banking System (CBS) enabled branch ofthe CFAs may issue the Kisan Credit Cards to the eligible members ofthe PACS in the form ofRuPay Kisan Cards/ Aadhaar enabled RuPay Kisan Cards designed by the NPCI that may be operated through PACS acting as ultra-thin branches using POS / Micro ATM or any other device approved by the NPCI. In such cases the interest margins as it may be determined by the SFA in consultation with the CFAS would be passed on to the account ofthe concerned PACS maintained at the Branches ofthe CFAs after recovery ofthe Cash Credit Loan or the Term Loan as the case may be.
Note: As the CC limit and the term loan limit are two distinct components ofthe aggregate card limit bearing different rates of interest and repayment periods, until a composite card could be issued with appropriate software to separately account transactions in either sub limits, two separate electronic cards may be issued.
19) The SFA may also issue loans directly to the PFAS where there is no CFA or with the consent ofCFA in cases where the CFA is not in a position to advance loans to PFAS for Seasonal Agricultural Operation subject to its bye-laws and norms framed by the SFA for the purpose.
20) The CFAs may provide loans to a co-operative farming society which has been organized by vesting of all the lands of the members in the society and such society shall be eligible for a loan up to its total number ofmembers on the basis of limit fixed for an individual member as provided in the Crop Loan Rules herein.
21) The CFAs may provide loans to co-operative farming society which has been organized by vesting ofall the lands ofthe members in the society and such society shall be eligible for loan for its members on the basis ofthe limit fixed for each individual member as provided in these Crop Loan Rules considering the general financial status and credit-worthiness under the following terms and conditionsa) The owners ofthe land shall create a charge upon land or such interest or such portion thereof as may be specified in the declaration creating the charge in favour ofthe society on a pro-rata basis of the area of lands pooled by each.
b) The society shall authorise the CFA, ifnecessary, by amending its bye laws to file dispute as per Act and/or take other legal actions in case ofdefault.
22) The Central FinancingAgency shall be competent to draw upon the credit limit with the State Financing Agency any number of times within the year to which it relates, provided that, at the time of such drawing their total borrowings from the State Financing Agency are covered by the non-overdue outstanding realisable from their affiliated Primary FinancingAgencies unless the State FinancingAgency permits drawal in special circumstances, after considering the past performance ofthe Central Financing Agency in the matter ofrepayment and its financial position as a whole.
23) During the transition phase ofissuance ofCredit LimitApplication ofeach individual orjoint KCC holder by the Primary Financing Agency in a composite form in a prescribed format, either in physical format or in e-filing format and availing withdrawal facility by the individual farmers using Rupay Kishan Cards/Aadhaar enabled Rupay Kishan Cards designed by the NPCI that may be operated through PACS acting as ultra-thin branches using POS I Micro ATM or any other device approved by the NPCI, or ATM ofany other bank, the Primary FinancingAgency shall be competent to apply for drawal upon the credit limit sanctioned and fixed by the Central Financing Agency. For the purpose of drawal, the Primary Financing Agency shall apply in respect of its non-defaulting members as well as for the new members for whom credit limits have been sanctioned for the purpose. The loans drawn against a particular borrower shall be disbursed to him and no diversion will be allowed and the un-disbursed amount shall have to be refunded to the CFA within 3 (three) days, provided that no subsequent drawal • ( 9THE KOLKATAGAZETTE, EXTRAORDINARY, OCTOBER 1, 2024PART I] ~======================================================= t l rr l t i } [ f !
l t shall be allowed unless the disbursement statement duly certified by the Chairman, Secretary and the Manager of the Primary Financing Agency is furnished to the Central Financing Agency, duly countersigned by the Area Supervisor of the CFA. Other modalities as well as documentation and maintenance ofthe securities as endorsed in the 'Crop Loan Rules for STCCS, WB-2013' would continue during such intervening period.
Provided further that PFA wise CA/OD loan account is to be created by CFA through which PFA can hold a certain limit ofbalance to be disbursed through micro ATM channel using RuPay KCC. The said limit shall be fixed by the concerned CFA. The O/D balance will be charged at existing rate ofinterest for SB A/C and penal interest ofone percent over the existing rate ofinterest for SB A/c shall be charged on the outstanding balance ofCA/O/D loan account for the period oftime beyond the permissible time frame forwhich such balance has been held.
24) When the CFA has granted extension and/or re-schedule the period of repayment after due approval from the Government on account ofnatural calamities affecting the farmer, the period for reckoning the status ofoperations as satisfactory or otherwise would get extended together with the extended amount of limit. When the proposed extension is beyond one crop season, the aggregate of debits for which extension is granted is to be transferred to a separate term loan account with stipulation for repayment in instalments.
25) The term loan component will be normally repayable within a period of5 years depending on the type of activity/investment as per the existing guidelines applicable for investment credit. Financing banks at their discretion may provide longer repayment period for term loan depending on the type ofinvestment.
26) In case the farmer applies for loan against the warehouse receipt of his produce; the banks would consider such requests as per the established procedure and guidelines. However, when such loans are sanctioned, these should be linked with the crop loan account, if any and the crop loan outstanding in the account could be settled at the stage of disbursal ofthe pledge loan, if the farmer desires.
27) Cash in transit insurance: It shall be compulsory for all the CFAs and the PFAs engaged in the distribution and collection of crop loans to cover all the cash in safe, cash in vault and cash-in-transit by taking out appropriate insurance policy in order to avoid any loss ofmoney.
28) Supervision :
a) The functionaries and Board ofthe PFA would be duty-bound to persuade each and every loanee member oftheir society to repay the loan in due time for their own interest and in the interest ofthe co-operative movement on a whole.
b) The CFAs and the PFAs shall submit such statements and returns as may be asked by the SFA and NABARD. The authorised officer of the SFA shall be allowed access to all the books ofaccounts and other records of the CFAs and the PFAs; likewise authorised officer/area supervisor of the CFA shall be allowed access to all the books ofaccounts and other records ofthe PFAS from time to time.
c) PFAs shall ensure that the recovery amount ofcrop loan from the members would be deposited to the CFA within three days from the date of collection till the new system is introduced.
d) PFAs shall fix the realistic cash retention limit and ensure that it is never exceeded under any circumstances till the new system is introduced.
e) If security is endangered, in that case the disbursement can be temporarily stopped.
f) PFA shall be bound to submit crop wise overdue I defaulter member details in CFA's prescribed format within 15 days from the last date ofrepayment for each crop loan.
g) PFA shall ensure deposit of entire loan amount recovered from members, failing which CFAmay stop further finance to the PFA and approach the appropriate authority as per provision ofSection 141 (d) ofWest Bengal Co-operative SocietiesAct, 2006 and initiate other legal measures for recovery of the diversion amount.
10 THE KOLKATAGAZETTE, EXTRAORDINARY, OCTOBER 1, 2024 [PART I 29) Security :
a) Security will be applicable as per RBI / NABARD guidelines prescribed from time to time.
b) Security requirement may be as under :
i) Hypothecation of crops up to card limit of Rs. 1.60 lakh as per the extant RBI/NABARD guidelines.
ii) The Banks may decide margin requirement for agricultural loans above the amount of Rs.
1.60 lakh.
iii) With tie-up for recovery : Banks may consider sanctioning loans on hypothecation of crops up to card limit ofRs.3.00 lakh without insisting on collateral security.
iv) Collateral security may be obtained at the discretion ofBank for loan limits above Rs.1.60 lakh in case ofnon-tie-up and above Rs.3 .00 lakh in case of tie-up advances.
v) In the districts where CFAs have the facility ofon-line creation ofcharge on the land records, the same shall be ensured.
c) Mortgage ofarable land would be taken to the extent required depending upon the notional value of land mortgaged charged which would be for the time being Rs. 2,00,000/-(Rupees two lac) per acre for all sorts ofarable land throughout West Bengal, except in the places such arable land have a lesser value due to its geographical situation subject to the minimum valuation Rs 1,00,000/ (Rupees One Lac) per acre. However, the borrower members would be required to furnish an undertaking to the effect that no portion of arable land for which crop loan has been received would be alienated/encumbered elsewhere without prior written permission of the PFA and the CFA.
In cases where KARBARNAMA (Mortgage Deed) cannot be made, a declaration may be obtained in the specified form from each borrower as per procedures laid down in Section 54 or 55 ofWest Bengal Co-operative Societies Act, 2006 and corresponding Rules thereof.
d) To facilitate legal action the borrowing PFAs shall authorise the CFAs, by appropriate amendment of the bye laws, where necessary, to file dispute cases and /or to take other legal steps including distrain ofstanding crops against the defaulting members. All declarations ofcharge and other loan documents shall be kept in safe custody ofthe branches ofthe CFAs till the loan is repaid in full.
e) In all cases the members ofPFAs shall have to maintain a share linkage of 1:20.
f) In all cases PFAs shall have to maintain a share linkage of 1 :20 with CFAs.
g) In all cases CFAs shall have to maintain a share linkage of 1 :30 with the SFA.
30) Calculation ofDemand and Rate ofInterest:
a) Demand in KCC loan account in a particular year shall be calculated as per seasonality of repayment for different crops.
b) The interest on KCC account will be calculated and realised in halfyearly rests in March and September each year without any compounding effect.
c) The extant rule ofthe Reserve Bank ofIndia ofcharging / compounding ofinterest on agricultural advances linked to crop seasons will be followed. In respect ofdirect agricultural advances, CFAs shall not compound the interest in the case of current dues ofthe cash credit component ofthe KCC loan, as the agriculturists do not have any regular source of income other than sale proceeds oftheir crops.
d) When cash credit component ofthe KCC loan becomes overdue, financing agencies, both PFA and CFA can add interest to the principal at halfyearly rests in March and September each year.
e) The CFAs shall charge interest on agricultural advances in respect of long duration crops, at annual rests instead ofhalf-yearly rests, and could compound the interest, if the loan/instalment becomes overdue.
I i { l l l PARTI] re THEKOLKATAGAZETTE, EXTRAORDINARY, OCTOBER 1, 2024 II Ir f) Penal interests shall be levied for reasons such as default in repayment as prescribed by the SFA in conformity with the RBI/NABARD guidelines.
g) No service charges/inspection charges should be levied on KCC loan limit up to Rs. 50,000/-. For loan limit above Rs. 50,000/- the CFAs will be free to prescribe service charges.
31) Classification ofaccount as NPA : The extant prudential norms ofRBI/NABARD for income recognition, asset classification and provisioning will continue to apply for loans granted under revised KCC Scheme.
32) Repeal and savings : As and when the present Crop loan Rules will come into effect Crop Loan Rules-2013 shall stand repealed, ifnot otherwise mentioned. Notwithstanding such repeal, anything done or suffered or any action taken including any suit or proceeding commenced, any dispute decided and any right or title accrued under the earlier Crop Loan Rules, shall be deemed to have been done or suffered or taken under these Crop Loan Rules as if these Crop Loan Rules were in force at all material times when such thing was done or suffered or such action was taken.
Annexure-A SI. Name of the Crop Seasonality For Investment/ Last Date of Repayment at the No. Leading at the PFA Level as well PFA Level as well as at the as at the CFA level CFALevel 1 Aus Paddy 1April to 31May 31December 2 Aman Paddy 1April to 30 September 31March Next Year 3 Maize 1April to 15 September 31st March Next Year 4 Maskalai 1April to 15 September 31March Next Year 5 a) Betel Leaves (Bangla pati) a) 1March to 31August a) 31MarchNext Year b) Betel Leaves (Mitha pati) Jute b) 1October to 31August b) 31March Next Year 6 Jute 1Feb to 15August 31December 7 Potato (Other than DarjeelingArea) 1September to 31January 31August 8 Potato (Winter) DarjeelingArea 1" September to 30 January 31"March 9 Potato (Summer) DarjeelingArea 1April to 31July 31"March 1"December to 31January 10 Squash 1June to 31August 31December 11 Cauliflower (Darjeeling District) 1December to 31.January 31May 12 Cauliflower 1August to 31October February End (Other thanDarjeeling District) 13 Kankrole 1January to 31"March 31November 14 Onion 1" October to 31" December 30 June 15 Banana 1April to 31.July 31March Next 16 Brinjal (Kharif) 1" June to 30 September 31March Next 17 Brinjal (Rabi) 1 October to 31"March 30 .June 18 Tomato 1August to 31"December 31March 19 OtherVegetables 1"January to 31March 30 June (Pre-Summer) (Other thanDarjeeling) 20 OtherVegetables 1April to 30June 30 September (Summer) (Other than Darjeeling) 12 THEKOLKATAGAZEITE,EXTRAORDINARY, OCTOBER 1, 2024 [PART I SI. Name ofthe Crop Seasonality For Investment/ Last Date ofRepayment at the No. Leading at the PFA Level as well PFA Level as well as at the as at the CFA level CFA Level 21 OtherVegetables (Rainy) l st July to 30th September 31st December (Other than Darjeeling) 22 OtherVegetables (Winter) 1 October to 31" December 31March Next (Other than Darjeeling) 23 Marigold Ist April to December End 31"March 24 Jasmine 1" November to 31" December 30 June 25 Gladioli 1April to 31July 31March 26 Tube Rose (Rajanigandha) 1April to 31May 31December 27 Rose 1"August to 31" October 31"March 28 Sunflower 151 December to 31January 31July 29 Mustard 151 October to 31December 30 June 30 Rapeseed 1 October to 31" December 30 June 31 Gram 151 October to 31st December 30% .June 32 Masur 1" October to 31December 30 June 33 Mung 151 October to 31December 30 June 34 Arhar 1October to 31" December 30 June 35 Linseed 1October to 31" December 30 June 36 Til 151 October to 31March 30th September 37 Ground Nut 151 January to February end 30 June 38 Arum 151 February to 15th May 30th November 39 Elephant-food 1November to 31March next 31st October Next 40 Ginger 151 February to 31May 31st January next 41 Boro Paddy 1st October to March end next 30th September 42 Tobacco 1" September to 31" January 30 June 43 Wheat 1October to 31" December 30 June 44 Large Cardamom 151 June to 31August 31December (Darjeeling District) 45 Tunt (Baisakhi/Ashari/Bhaduri) 1May to 31"July 31December 46 Tunt (Aghrani/Falguni) 1st October to February end 30 June 47 Green Tea-leaves 1December to February end 31 october 48 Chilli 1" January to 31March 30 September 49 Watermelon 1"December to 31January Next 31.July 50 Turmeric 151April to 15August 31"March next 51 Pineapple 151 October to 15th March 30th September 52 Sugarcane 1October to 31"March next 31"March Next year 53 Cabbage (Darjeeling) 1April to 31December 31March 54 Beans (Darjeeling)Kharif 1"April to 31May 30th September 13THE KOLKATAGAZETTE, EXTRAORDINARY, OCTOBER l, 2024PARrI] ~=========================== r SI. Name of the Crop Seasonality For Investment/ Last Date of Repayment at the No. Leading at the PFA Level as well PFA Level as well as at the as at the CFA level CFALevel 55 Beans (Darjeeling) Winter pt November to 31January next 30%April 56 Peas (Darjeeling) pt August to 30th September 31" .January 57 Radish (Darjeeling) 1"July to 31" December 3OApril 58 Carrot (Darjeeling) pt July to 31December 30%April 59 Soya beans (Darjeeling) 1 October to 31December 31March Next Year By order ofthe Governor, DR. KRJSHNA GUPTA Additional ChiefSecretary to the Government ofWest Bengal Published by Cooperation Department, West Bengal and printed at Saraswaty Press Ltd.
(Government ofWest Bengal Enterprise), Kolkata 700 056.