ADWDRS-2008REVISIT

Performance audit by CAG

COVERAGE

Loans for agricultural and allied

activities.
By Scheduled Commercial Banks,
Regional Rural Banks, LDB &
Cooperative Credit Institutions
To Small/Marginal & Other
Farmers.
Throughout India.

DEFINITIONS
Cooperative Credit Institutions
means:
a) PACS/FSS/LAMPS
b) DCCBS
c) SCBs
d) PCARDB
e) SCARDBs

DEFINITIONS.(CONTD.)
Agriculture loans means loans to agriculture &
allied activities & includes:
a) ST Production Loans (repayable within 18
months)(also includes WC loan, not exceeding
Rs. 1 Lakh, for traditional and non for
traditional plantation and horticulture)
b) Direct Investment Loans for agriculture
c)
Term Loan for allied activities
d) Loans to members of SHG/JLG provided
banks/SHGs/JLGs maintain disaggregated
data on such finance
e)
Loans to farmers through PACs, FSS & LAMPs.

DEFINITIONS.(CONTD.)
Exclusion:
a) Advance against pledge /
hypothecation of agriculture
produce
b) Advance to Corporates,
Partnerships firms & institutions
c) Consumption loans to rural
borrowers against pledge of gold
ornaments

DEFINITIONS.(CONTD.)

Marginal Farmer - Landless labourers & farmers

owing agriculture land upto 1 ha
Small Farmer - Farmers with 1 2 Ha land
Tenant Farmer / Oral Lessee / Share Cropper - to be
categorised on the basis of owned and recorded land
holding, being cultivated
Other Farmers - Farmers holding in excess of 2 ha
Applicability of Categorisation land holding as on
date of sanction/disbursement as per record
Categorisation allied activities:Small and Marginal Farmers - Loans upto Rs.50,000

Other Farmers - Loans in excess of Rs. 50,000

ELIGIBILITY CONDITIONS

Agricultural loans disbursed upto 31 March

2007 and
Overdue as on 31 December 2007 and
Unpaid as on 29 February 2008
Agriculture loans restructured / rescheduled
in 2004 & 2006 in the normal courses as per
RBI/NABARD guidelines
Not applicable for loans extended prior to 01
April 1997 (except for restructured /
rescheduled ).
Interest claims should not be excess of the
original amount of principal disbursed.

CLARIFICATION ON NPA LOAN

No interest will be applied from the date

when the loan account was classified as NPA.
Hence, interest on loans classified as NPA for
any period after it is so classified can neither
be claimed from the Government nor from
the farmer.
Unapplied interest on NPA loans are neither
to be claimed from the Government nor from
the farmer.

PATTERN OF ASSISTANCE

Full Waiver of eligible

amount for SF/MF
A rebate of 25% on the
eligible amount under OTS
for other farmers

IMPLEMENTATION

Eligible institutions to draw lists of eligible

borrowers
The amount of waiver/ relief to be
communicated to each borrower
Other farmers to sign an agreement with the
bank to be eligible for fresh finance
Individual farmers account to be credited
Banks/coop to issue a certificate to the
borrower clearly indicating the extent of
waiver / relief provided
All eligible farmers to be given fresh loans
thereafter

NODAL AGENCY
RBI for Commercial Banks /
Urban Cooperative Bank /
Local Area Bank
NABARD
for
Cooperative
Banks and Regional Rural
Banks

PERFORMANCE AUDIT BY CAG

Performance audit of ADWDRS-2008 by C&AG

during 2011-12.
Conducted in 25 states
Involving audit of 90,576 accounts in 715
branches of 92 districts of the country.
A very small sample of the total number of
around 3.45 crore beneficiaries covered
under the Scheme.
The audit also examined 943 cases of
complaints

OBSERVATION OF C&AG
Ineligible accounts of farmers extended
benefits under the scheme.
Instance of tampering and
overwriting of inadequate document
Benefit was extended to MFIs
Less/Excess benefit extended to eligible
accounts
In-admissible charges claimed by bank
Non-issuance of debt waiver and debt relief
certificate
Outcome relating to fresh loans not monitored

CORRECTIVE MEASURES

The beneficiaries lists need complete

verification, with priority being given to
areas where indebtedness was high.
Fixing of responsibility of bank officials as
well as auditors.
Recovery
of
money
from
ineligible
beneficiaries.
Issuance of Debt waiver / Debt relief
certificates immediately.
Fresh list of eligible beneficiaries who were
not extended benefits

IMMEDIATE ACTION BY BANK

Branches which were audited by C&AG are

required to be taken up for cent per cent
verification on a priority basis and the
entire exercise of re-verification / checking
by concurrent auditors/HO officials and
certification of all accounts by statutory
auditors in respect of such branches are to
be completed by 25 March 2013 and
feedback thereon furnished to NABARD
latest by 29 March 2013 as per format
given in Annexure II.

BANKS/BRANCHES VISITED BY
C&AG IN PUNJAB

PGB - Gurdaspur & Nauser

Majha Singh
MGB Ghanour & Shambhu
PSCADB

Patiala,
Patran,
Gurdaspur,
Batala,
Abhohar,
Jalalabad, Lopke
PSCB Samana, Devigarh,
Talwandi Bhai Gurdaspur, Sitto
and Guno

ACTION POINTS FOR BANK

COMPLETE RE-VERIFICATION EXERCISE (ALL ACCOUNTS) 30 APRIL 2013

Submission of Pilot re-verification report by

13 March 2013
Submission of Refund details to NABARD
(annexure V) by 18 March 2013.
Preparation of Annexure I (one time status
report waiver and relief provided,
certificate issued and fresh loans issued) by
branch by 25 March 2013
Submission of consolidated Annexure I by
banks to NABARD by 31 March 2013.

ACTION POINTS FOR BANK(CONDT.)

Complete re-verification exercise (all accounts) at

Branch.
100% checking by concurrent auditors/senior officials
from HO of bank.
Test checking by Statutory auditors.
Preparation of Annexure II (defects/ discrepancies
detected ) by branch.
Submission of consolidated Annexure II by banks to
NABARD by 30 April 2013.
Preparation of Annexure III- Part A (inelligible /
excess amount paid/ claimed) and Part B ( Eligible
benefits not provided/ short payments) by branch for
checking /auditing.

ACTION POINTS FOR BANK(CONDT.)

Constitute team for inspection / Audit of reverification exercise by branch

Wherever
tempering
records,
alteration,
overwriting etc. are reported special team may
be constituted and action against erring official
initiated immediately followed by
Preparation of Annexure IV by branch for
checking /auditing by HO/ NABARD/ DFS.
Submit Annexure VI by 25th of the month to
NABARD.
No adjustment and net off.
Annexure VII and Annexure VIII Certificates