|Disbursement / Operation In The Account
a) The issuing Branch would maintain the ledger account in respect of each Star BKC account and all the operations in the account will be through issuing Branch.
b) The card holders should be allowed to draw cash of the total sanctioned limit as per their requirement.
c) Withdrawal in the Star BKC account will be through withdrawal slip specially printed for the purpose (green colour already in use for KCC).
d) At the time of withdrawal and deposit, the beneficiary should present the passbook for recording the transaction.
e) Though drawals in the account are expected as per seasonality of the crops / sub-limits, yet, some flexibility may be allowed to enable the farmer to purchase inputs at convenient time when availability / prices are favourable.
f) Submission of invoices / quotations should not be insisted upon as limit / sub-limits are expected to be used on the basis of scale of finance.
a) Crops financed should be insured as required by law or as covered under various schemes.
b) Crop Loan portion of the finance should be covered under the Rashtriya Krishi Bima Yojana (RKBY) of the Agriculture Insurance Company of India Ltd. (AIC).
c) Insurance premium should be debited to the relative loan account and claims if any be credited to the beneficiary’s account promptly.
|Personal Accident Insurance
a) Star Bhoomiheen Kisan Card holders should be covered under Personal Accident Insurance scheme as applicable to KCC / Kisan Samadhan Card.
b) The entire cost of insurance including that of farmer’s share to be borne by the Branch.
|Supervision And Follow-up
a) Pre-sanction inspections should be carried out in all cases. In cases of schematic lending, where finance is granted through tie-up recovery arrangement with a sugar factory or a processing unit, inspection at random basis in 10 percent cases should be carried out.
b) Similarly, post disbursement inspections should also be carried out to ascertain end use of funds. In case of schematic lending also, post disbursement in atleast 10 percent accounts should be carried out.
The sale proceeds should be routed through the cash credit account. Market linkages, wherever possible, should be ensured.
|Other Operational Guidelines
a) If a farmer has obtained short term finance from other Bank / Co-operative society, such farmer should not be issued Star BKC.
b) Wherever crop insurance is available, coverage needs to be obtained.
c) In case of default, the special facilities under the scheme should be immediately withdrawn and the limit should be treated as normal crop finance which would broadly mean -
- Withdrawal of cheque book facility (if issued).
- Future disbursement on regularisation of account against bills / receipts.
- Withdrawal of card (those who have been issued plastic cards).
|Application Of Prudential Norms
a) The Star BKC facility being in the nature of cash credit accommodation for agricultural purposes, the prudential norms as applicable to such facilities would apply to the BKC accounts.
b) In other words, the credit card account would be deemed to be a Non-Performing Asset (NPA) if it remains out of order for a period of two crop seasons / one crop season (as the case may be, depending on the duration of the crops) after the repayment due date.
c) The crop seasons after the due date should refer to only those two consecutive crop seasons in which the farmer usually undertakes crop production.
d) An account will be treated as out of order in the following circumstances:
- There are no credits in the account continuously for two crop seasons as on the date of balance sheet, or
- The credits in the account are not sufficient even to cover the interest debited in respect of the account for two crop seasons, or
- The outstanding remains continuously in excess of the limit for two crop seasons as on the date of balance sheet.
|Reporting Of Transactions In LBR's
While reporting transactions in LBRs the following aspects may be kept in view:
a) The credit limits sanctioned/likely to be sanctioned to the borrowers under the Star BKC may be included in the Branch Credit Plan and reported in LBR-1.
b) All debit entries (excluding those relating to the interest charges) may be reported in LBR-2 as and when such transactions take place.
c) The amount outstanding in the Star BKC account may be taken as credit being provided for target purpose.