TSCAB’s ST Policy 2017-18 | TSCAB
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TSCAB’s ST Policy 2017-18






Refinance from TSCAB

TSCAB will provide refinance to the DCCBs involving its own funds and refinance drawn from the NABARD and also based on Non-overdue outstanding backed by Ground Level Credit during the year 2017-18.


Policy guidelines for sanction of limits to DCCBs

Pending receipt of NABARD policy under normal limit for the year 2017-18, TSCAB policy is prepared, based on the NABARD ST-SAO Policy under normal refinance for the year 2016-17 and performance of the DCCBs during 2015-16 and 2016-17 and also the thrust given to agriculture lendings by Govt. of India and NABARD.The following policy guidelines governing sanction and operation of Seasonal Agricultural Operations (SAO) are issued. If any changes in the Policy, will be communicated from time to time.

  1. The ST-SAO operative limits for each DCCB are sanctioned based on Projected Lending Programme as assessed by the DCCBs and TSCAB. The limits will be valid for the year 2017-18 i.e. 01.04.2017 to 31.03.2018.

  1. As the Government of India Subvention Scheme is expected to continue for the year 2017-18, the ultimate borrower shall be charged interest @ 7% p.a up to due date, for loan amount of upto Rs.3.00 lakhs per Borrower.

  1. Keeping in view the Interest rate charged by NABARD on its refinance under Normal SAO and Additional SAO, TSCAB will charge the Uniform Rate of Interest @5.00% p.a to the DCCBs.

The Rate of Interest is fixed as detailed below:

Uniform Rate of Interest


4.50% & 7.50% p.a. (on Additional SAO)


5.00% p. a


5.60% p. a

PACS to Farmers

7.00% p. a

  1. The Schemes of the State Government under Vaddileni Runalu and

Pavala Vaddi will be applied as per the guidelines issued in this

regard from time to time.

  1. In the event of default in repayment of principal and /or payment of interest by the DCCB to TSCAB, PACS to DCCB and member to PACS, the interest shall be charged @10.50% p.a, @11.45% p.a and @13.00% p.a respectively. The respective tiers may also add their existing penal interest during the defaulted period of loan.

  1. The above normal and overdue rates of interest may vary from time to time as prescribed by TSCAB.

  1. TSCAB will allow drawal to DCCB only against non-overdue crop loans and it is advised that the DCCBs may also stipulate NOC norms to PACS.

  1. TSCAB would initiate appropriate action in case of availment of drawal beyond permissible quantum of refinance on account of reporting incorrect NOC position and/or furnishing incorrect data on crop loan disbursement. In such cases of excess drawal by any DCCB, TSCAB reserves the right to call back the excess refinance and may even stop further refinance.

  1. The DCCBs/PACS shall observe the following norms/discipline for sanction/operate upon the limits.

  1. DCCB may insist on the PACS to apply for a limit for the current year (2017-18) and sanction the same and allow operations within the limit fixed to the PACS.

  1. The crop loan credit shall be based on demand and performance by the PACS rather than target.

  1. The audit of DCCB and PACS for the year 2015-16 should have been completed and the relative audit report along with the financial statements received at the higher financing agency. Further, the audit of the DCCB for the year 2016-17 should be completed by 30.09.2017. The latest audit report of the PACS should be lodged with the DCCB before any drawal is allowed to the PACS.

  1. The DCCBs are required to submit an action plan for achieving a recovery target of 85% and over, in the next 2 years and the DCCB may insist on the same from PACS.

  1. The DCCBs which received assistance under Revival Package should have a minimum CRAR of 7% and the DCCB may stipulate similar condition for PACS.

  1. The DCCB should pass on the collections under both ST & LT on

then and there basis as per the operational procedures issued

from time to time and the DCCB may adopt similar procedure for



 SAO financing through DCCBs:

  1. The big farmers having large land holdings not able to draw adequate finance from PACS may be considered for SAO crop loan from DCCB branches directly.

  1. The guidelines given for financing through PACS shall necessarily be complied with for direct finance. In respect of progressive farmers whose investment may be more, Crop loans may be provided as per evaluation of requirement by the Branch Manager.

  1. The direct loans may be issued mainly for Commercial Crops where investment is high, like Sugarcane, Tobacco, Turmeric, Horticulture Crops etc.,

  1. The direct loans may be given by the DCCBs as per Scale of Finance and acreage to the progressive farmers having good recovery record, keeping in view the Individual Maximum Borrowing Power as fixed by the DCCBank.

  1. The direct SAO loans through branches as per Scale of Finance to big and progressive farmers having studied their cash flows may be given loan of ST-Others Product taking their acreage into consideration. For this, Separate Line of Credit ST(Others) is available.


Other terms and conditions:

  1. The PACS/DCCBs may involve their own resources to an extent of 30% in their ST-SAO non-overdue loans to secure refinance smoothly.

  1. The DCCBs shall comply with the norms prescribed for professional Directors (Elected/Co-opted) and fit and proper criterion prescribed by RBI for appointment of CEOs of the Bank.

  1. All crop loans should invariably be insured under PMFBY/WBCIS as applicable. The DCCBs/PACS may include the premium component to the loan, while making sanction and disbursement of the crop loan.

  1. Bank may ensure implementation of KCC scheme with issuance of ATM cum Debit card/ Rupay card to the borrowing members.

  1. All crop loanees should be provided with CKCC. The Non-CKCC borrowers if any should immediately be brought under CKCC. Transactions under Non-CKCC will not be counted for refinance purpose.

  1. All the CKCC borrowers be required to open a Savings Bank Account (No Frills Account) with the Branch of the DCCB to which his / her PACS is attached. This account is now made mandatory to facilitate direct cash transfer in respect of State and Central Government schemes, including interest subsidy etc.

  1. All CKCC holders shall be covered under Personal Accident Insurance Scheme (PAIS) under the extant guidelines, under the premium sharing pattern envisaged therein.

  1. In respect of fresh loans, the DCCB along with PACS should take up pre-sanction inspection in all cases and also should undertake post disbursement verification at least in 10% of the cases of loan disbursed for ascertaining proper end use of funds.

  1. The guidelines for operating upon the limits with TSCAB are given in the Annexure.







  1. The ST-SAO Credit Limit(s) sanctioned to DCCBs is/are operative upto 31st March 2018.

  1. The Limits sanctioned for the year 2017-18 are exclusive of the amount(s) outstanding against the sanction(s) made for the respective purpose(s) for the previous year. Therefore, the Outstandings relating to the year 2016-17 are frozen as at close of business hours on 31.03.2017 under Account No. XII.

  1. For the Credit Limits sanctioned for the current year (2017-18) a new account – Account No. XIII will be opened for allowing drawals. All the repayments received would, however, be first adjusted against Account No. XII till the balance outstanding in that account becomes NIL.

  1. The outstanding balance(s) in the account(s), are repayable on demand; but, TSCAB without prejudice to its right to recall the advances at any time, may not ordinarily exercise this right for a period of 12 months from the date of each drawal.

  1. The DCCB shall pay interest in half-yearly rests on the outstanding balance(s) in the account(s) XII and XIII at the rates as prescribed by TSCAB from time to time. Such interest shall be payable at the end of September and March or earlier when the outstanding balance is repaid in full.

  1. TSCAB reserves the right to revise the rates of interest chargeable on refinance at any time during the year and the revised rate(s) of interest will be applied to the entire outstanding borrowings of the DCCB under the limits from the date of revision.

  1. In the event of default to TSCAB by the DCCB in repayment of the principal and / or payment of interest and other dues, TSCAB shall without prejudice to the other rights and remedies may recover the amount due to TSCAB from the current account of the DCCB maintained with TSCAB.

  1. It will be open to TSCAB to recall the loans outstanding under the Credit Limit(s) sanctioned or any portion thereof or stop allowing further drawals in the event of violation of any of the conditions governing the sanction of Credit Limit(s).

  1. The DCCB shall ensure that out of the short term agricultural advances made to PACS during the year, at least 30% is issued for financing Small and Marginal Farmers.

  1. The DCCBs should increase their lending to tenant farmers / oral lessees having LEC Cards and through Joint Liability Group Schemes.

  1. The DCC Bank shall at the time of each drawal on the Credit Limits sanctioned to it furnish to TSCAB a certificate to the effect that the drawal is within its Reserve Borrowing Power.

  1. The DCCBank shall ensure that Loans and Advances made and outstanding against societies for meeting the Crop Loan requirements of tribals (under DTP) and for financing cultivation of Oilseeds and Pulses (under OPP /NPDP) and cultivation of “Other Crops” excluding the overdues under respective purposes are at no time less than the amount outstanding to TSCAB under the respective limits. At the time of each drawal on the respective Credit Limits sanctioned to the DCCB, the DCCBs shall furnish to TSCAB a certificate in the prescribed format to the effect that the drawal together with the outstanding under previous drawals made will not exceed the DCC Bank’s short-term non-overdue loans outstanding against PACS under the respective purposes.

  1. The DCCBank shall furnish to TSCAB a monthly statement indicating the position of non-overdue cover maintained separately for each purpose viz., financing crop loans under DTP, financing cultivation of Oilseeds and Pulses under OPP/NPDP and financing cultivation of ‘Other Crops’, so as to reach by the 10th of the succeeding month to which the Statement relates. In the event of non-submission of these statements, no drawals on the Credit Limits will be allowed till such time the statements are furnished. In case of any deficit in maintenance of adequate cover by DCCBs for the borrowings effected from TSCAB the DCCB shall make good the deficit in NODC so as to provide adequate non-overdue cover for borrowings from TSCAB. If such deficit is not regularized within one month from the date of occurrence of such deficit the DCCB shall pay additional interest at 1.00% p.a. on the amount of deficit in NODC for the duration of deficit till the position is regularized.

  1. The DCCBs should ensure that the required percentage of loaning is made by PACS to SC and ST category farmers i.e, 15% and 6% of total loans respectively.

  1. The DCCB shall be allowed drawals to the extent of 70% of ground level credit disbursed during the operative period only (The involvement of TSCAB will be brought to the level of 70% of NODC).

  1. The DCCB shall ensure that the total amount of drawals made during the currency of the limit shall not exceed prescribed percentage of the loans issued to the eligible PACS during the period 1st April 2017 to 31st March 2018.

  1. The DCCB should ensure that the PACS maintain the Books of Accounts as per Common Accounting System (CAS) and Management Information System (MIS), prescribed by NABARD and prepare financial statements as per the formats prescribed under CAS.

  1. TSCAB would have the right to cause special audit of the Books of Accounts and other relevant material of the DCC Banks & PACS either by itself or through other Agencies (the cost of which is to be borne by DCCB) to ensure that the same are maintained as per the rules and regulations in force and that the terms and conditions of refinance are adhered to by the DCCB / PACS.

  1. It will be open to TSCAB to depute its officers for inspecting the District Cooperative Central Bank and the Societies availing of financial accommodation under the above sanction.


i) TSCAB reserves to itself the right to stop making further advances to the DCC Bank even when the credit limit sanctioned has not been fully drawn if:

  1. The CCB defaults in repayment of principal, payment of interest and / or any other dues under any line of credit sanctioned by the Bank.

  1. The Chief Executive of the DCCB is appointed/ replaced/ renewed without prior consultation with TSCAB and such appointment is not as per fit and proper criterion prescribed.

  1. The regulations/instructions laid down by the RBI/ NABARD/ TSCAB relating to issue and repayment of crop loans, interest rates thereon, conversion/ reschedulement / deferment of loans or other relief measures are contravened either directly or indirectly by the DCCBs or PACS.

  1. TSCAB shall also suspend drawals on the Credit Limit(s) if the DCCB

  1. Defaults in the submission of the statutory returns under the Banking Regulation Act, 1949 (As applicable to Cooperative Societies).

  1. Defaults in the maintenance of Cash reserves and/or liquid assets as required under Sec. 18 and 24 of the Banking Regulation Act, 1949 (AACS).

  1. The DCCB fails to submit the compliance report on the latest inspection report issued by TSCAB/NABARD within the stipulated time or the compliance report is found perfunctory and defects noticed / suggestions made remain un-rectified / unimplemented.

  1. The DCCBs should submit the CKCC returns Quarterly and monthly

within the stipulated time.

  1. In case a DCCB is in default to TSCAB under ST-SAO continuously for a period exceeding 3 months the DCCB concerned will not be allowed to operate on the limit till the default is regularized.

  1. At the time of each drawal, the DCCBs should have passed on to TSCAB the collections in full as of one week preceding to the date of drawal.

  1. Necessary action would be initiated in case of availment of drawals beyond permissible quantum of refinance on account of reporting of incorrect data on crop loan disbursements by way of calling back the excess refinance and/or stopping further refinance.

  1. The DCCBs should submit the following documents before operating upon the limit:

  1. DP Note/TP Note for the limit applied/drawal preferred.

  1. Board Resolution seeking the limit and authorized officials to operate the limit/ execute the documents.

  1. Agreement duly signed on each page by the authorized officials with stamp and seal.

  1. Certificate certifying that the ultimate borrower is charged interest not exceeding 7% p.a.

  1. Certificate to the effect that the audit of the PACS financed by the DCCB is completed for the year 2015-16 and audit report received.

  1. Certificate to the effect that the TP notes of PACS are in safe custody with the DCCB and are within the intrinsic value.

  1. Certificate to the effect that the interest incentive subvention due to the farmer has been credited to the farmers accounts.

  1. Certificate to the effect that the recovery percentage under crop loans of the PACS financed by the DCCB is 50% or more.

  1. Other statements/certificates as may be prescribed, from time to time.