Agri Prudential Regulations

7/31/2019 Agri Prudential Regulations

1/7

PRUDENTIAL REGULATIONSPRUDENTIAL REGULATIONS

FOR AGRICULTUREFOR AGRICULTUREFINANCINGFINANCING

Submitted and Presented to:Submitted and Presented to:

Sir. AtifSir. Atif

Presented by: Amal Zaib KhanPresented by: Amal Zaib Khan

Enrollment # (2008-A05)Enrollment # (2008-A05)


2/7

P-R FOR AGRICULTUREP-R FOR AGRICULTURE

FINANCINGFINANCING


3/7

R-8: PROPER UTILIZATION OF LOANR-8: PROPER UTILIZATION OF LOAN

Where the agricultural loans have beenWhere the agricultural loans have beenextended for specified purposes, the banks/DFIsextended for specified purposes, the banks/DFIs

are encouraged to ensure that the loans haveare encouraged to ensure that the loans have

been utilized for the same purposes for whichbeen utilized for the same purposes for which

they were obtained.they were obtained. The banks/DFIs may consider it prudent to makeThe banks/DFIs may consider it prudent to make

payments directly to the suppliers.payments directly to the suppliers.

However, this regulation will not apply onHowever, this regulation will not apply on

farmers who are provided loans under Revolvingfarmers who are provided loans under Revolving

Credit SchemeCredit Scheme


4/7

R-9: CREDIT REPORTR-9: CREDIT REPORT Where financing facility in excess of Rs. 500,000 atWhere financing facility in excess of Rs. 500,000 at

present prescribed by the State Bank of Pakistan.present prescribed by the State Bank of Pakistan.

Then the banks/DFIs would obtain credit report of theThen the banks/DFIs would obtain credit report of the

borrower from Credit Information Bureau of State Bank ofborrower from Credit Information Bureau of State Bank of

Pakistan.Pakistan. For any exposure banks/DFIs would give due weightageFor any exposure banks/DFIs would give due weightage

to the CIB report.to the CIB report.

They may take exposure on defaulters keeping in viewThey may take exposure on defaulters keeping in view

their own risk management policies and criteria, providedtheir own risk management policies and criteria, providedthey properly record reasons and justifications in thethey properly record reasons and justifications in the

approval form.approval form.


5/7

R-10: BORROWER BASIC FACT SHEETR-10: BORROWER BASIC FACT SHEET

AND KYC REQUIREMENTSAND KYC REQUIREMENTS Before extending any financing facility, banks/DFIs wouldBefore extending any financing facility, banks/DFIs would

obtain information from the borrower.obtain information from the borrower.

Information will be taken on Borrower Basic Fact SheetInformation will be taken on Borrower Basic Fact Sheet

(BBFS).(BBFS). (BBFS) can be a part of their loan application form for the(BBFS) can be a part of their loan application form for the

convenience of borrowers.convenience of borrowers.

The banks/DFIs do not need to obtain separate (BBFS) ifThe banks/DFIs do not need to obtain separate (BBFS) if

the information required in the (BBFS) has already beenthe information required in the (BBFS) has already been

made a part of the Loan Application Form.made a part of the Loan Application Form.


6/7


AND KYC REQUIREMENTSAND KYC REQUIREMENTS

Banks/DFIs would ensure compliance with KYCBanks/DFIs would ensure compliance with KYC

requirements laid down in Regulation M-1 of Prudentialrequirements laid down in Regulation M-1 of Prudential

Regulations for Corporate / Commercial Banking.Regulations for Corporate / Commercial Banking.

Banks/DFIs would ensure compliance with otherBanks/DFIs would ensure compliance with other

instructions issued from time to time, before openinginstructions issued from time to time, before opening

account of an agricultural borrower or before extendingaccount of an agricultural borrower or before extending

financing facility to him.financing facility to him.

Agriculture Pass BookAgriculture Pass Book// Khasra GurdwariKhasra Gurdwari// Fard JamaFard Jama

BandiBandiduly attested by Revenue Officer shall beduly attested by Revenue Officer shall be

considered sufficient for his introduction.considered sufficient for his introduction.


7/7


AND KYC REQUIREMENTSAND KYC REQUIREMENTS The banks/DFIs may also accept introduction of otherThe banks/DFIs may also accept introduction of other

persons viz.persons viz.

The Revenue Officer, Post Master/Postman, Supplier ofThe Revenue Officer, Post Master/Postman, Supplier of

agri-inputs, member of Union Council and a person fromagri-inputs, member of Union Council and a person from

the Marketing Agency.the Marketing Agency.

Documents

Agri Prudential Regulations