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Circular No.10/2013 Date: 15-04-2013 TO ALL OFFICERS ------------------------------------------------------------------------------------------------------------------ Dear Comrades,

AGRICULTURAL DEBT WAIVER & DEBT RELIEF SCHEME 2008

The members are well aware that all the banks in India have implemented the Agricultural Debt Waiver & Debt Relief Scheme-2008 in terms of the directions from the Central Govt. during June 2008. While implementing the above scheme due to several practical constraints and the stringent time lines for implementation there is every possibility that some mistakes of omissions / commissions may have taken place in preparation of the lists of eligible borrowers resulting in some excess/short claims and some other mistakes of omissions and commissions may have crept in. All the above reports/statements had been thoroughly verified by the visiting ZO officials and the Inspection team. The statements have also been verified and certified subsequently by the Statutory Auditors.

But, the CAG who had done the Performance Audit of the implementation of the scheme in select branches of various Public, Private, RRB’s & Cooperative Banks etc., have come up with a report wherein the they have reported anomalies in various areas of implementation resulting in payment of excess claims and also inclusion of ineligible borrowers etc.

This has lead to the Central Government taking a serious note and they wanted to ensure verification of all the branches of the Banks and take remedial steps and the RBI has been entrusted with the task of monitoring.

Meanwhile, at our bank level, the officers who were working in those selective branches that had been subjected to the CAG Audit - have been asked to explain the deviations reported by CAG in implementation.

We have taken up the issue with our top management to ensure that in the name of CAG report, the concerned officers should not be taken to the task for the bonafide mistakes that were inevitable while working in such pressure situation.

In fact, the constraints of the field level officials and the mistakes and the shortcomings in the Scheme Design and the time frame etc., had been well documented in the TEXT of the CAG report itself and we have highlighted the same before the top management. We have written a letter to our Management detailing the practical aspects and seeking a practical and lenient view. (Letter enclosed)

We are glad to inform you that the management has assured us that they will have a practical approach in the matter and all the bonafide mistakes will have a lenient dispensation.

Meanwhile, we also request the Managers/Staff of the branches where the Scheme was implemented to make all the efforts to make available the concerned records to the Inspectors of Branches so that the verification process is completed at the earliest. We also request the officers not to feel agitated on the subject as the management was also very reasonable and appreciative of the practical constraints in the then prevailing working environment at the time of implementation.

With greetings, Affectionately Yours,

(V. RAGHAVENDRA SARMA) General Secretary

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Ref.No.26/3/2013 Date: 06.04.2013 The Chairman & Managing Director, Andhra Bank,Head Office, Hyderabad.

Respected Sir,

Sub: Performance Audit of implementation of Agricultural Debt Waiver and Debt Relief Scheme-2008 - Issues of concern to officers.

*** With reference to the above, we understand that the CAG has submitted their report to Parliament after making the performance audit of select branches of various Public, Private, RRB’s, and Cooperative Banks etc regarding the implementation of the above scheme. The CAG reported anomalies in implementation of the scheme and the Govt. of India consequently had felt that there is a need to verify the following aspects at all the branches in the following areas.

• The beneficiaries list need complete verification with priority being given to, areas where indebtedness was high.

• Administrative/accounting lapses on the part of officials, internal auditors and statutory auditors who were responsible for verification & certification etc., and to fix accountability against the concerned.

• Cases of extending benefits to ineligible borrowers.

• All cases of tampering of records or alteration etc., with a view to facilitate higher claim. Now, the present issue being that following the CAG report the Govt. of India has taken a serious view of the matter and wanted to ensure verification of all the branches of the Banks and identify and take the remedial steps and the RBI has been monitoring the task. Before we make our submissions in the matter, we wish to submit that the CAG report under Audit Findings (II –Part) mentions the following aspects: “2.1: Scheme Design: Time frame for implementation and capability of lending institutions. The scheme set an ambitious target of achieving debt waiver/debt relief for an estimated 4.29 crore farmer accounts in a very short span of one month. The scheme was circulated to banks on 28th May, 2008 with a stringent deadline of 30th June, 2008 for drawing up beneficiary lists by lending institutions. An important clarificatory circular was issued as late as on 18th June, 2008. Audit found that the design of the scheme did not take into account varying capacity and infrastructure of the lending institutions. Apart from the fact that a huge number of branches of the Scheduled Commercial Banks were directly involved, the scheme was also to be implemented by around one lakh Primary Agricultural Cooperative Societies (PACS), District Central Cooperative Banks (DCCBs) and Regional Rural Banks (RRBs) and other branches situated in remote localities. In light of these issues, the timeline of 30th June, 2008 was unrealistic and fraught with risk of errors as eventually seen in audit.” From the above observations of the CAG it is very clear that the implementation of the above scheme at such a pace so as to conclude the Debt Waiver Scheme by June 2008 and the fact that in respect of the Debt Relief Scheme also the Banks were continuing to get revised guidelines and clarifications on the subject for more than 12 months and all this may have resulted in some errors having been crept in preparation of borrowers lists due to misinterpretation and the consequent implementation.

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In this background, we make the following submissions for your kind appreciation of the practical aspects and seeking a lenient dispensation.

1. The claims made by the branches in terms of the ADWDRS-2008 scheme was attended by all the concerned staff members as part of the branch team and the identification and classification of the accounts etc., has been done in conformity with the RBI/HO guidelines to the best of their comprehension and basing on the then available documentary records and communications from the Government received at the branch.

2. Further, due to the stringent and narrow timeline of one month for Debt Waiver Scheme by 30th June, 2008 they had to complete the task within a short span of time, which does not afford the scope for a minute verification of all the records and loan documents as there very large number of accounts in most of the branches. In such circumstances it may not be fair to hold any individual officer as accountable for such team effort at the branches.

3. The report/statement had gone through the scrutiny of the visiting ZO officials and inspection team and they have been certified as to their correctness. Subsequently, the same had been verified and certified by the Statutory Auditors thus the branches have fully complied with the AUDIT requirements in terms of the ADWDRS Scheme – 2008.

4. With regard to the specific deficiencies/lapses in respect of the individual accounts for which the letters of explanation are being issued to all the concerned officers it is submitted that the officers may not be able to give a reasoned explanation without verifying the loan documents etc which had formed the basis of preparing the statements more so after a lapse of more than 5 years. Further it may also be noted that all most all the then officers who have dealt with the scheme during 2008 are not continuing in the same branches which makes their task much difficult.

5. We are also worried that whether, after such a long lapse of time the relevant records and supplementary documents can be made available to the officers to enable them to recollect and come up with a comprehensive reply to the satisfaction of the management.

6. We also feel that all the mistakes of omissions and commissions in preparation of the borrowers lists as part of the claim are bonafide in the nature and a lenient view is to be had while dealing with such cases more so in the light of the above facts & circumstances.

7. We also understand that some of the nationalized banks have already given a consolidated compliance certificate to the Government stating that they do not have any such cases that need to be rectified.

In the circumstances, we solicit a practical approach in the matter and request you to restrict the scope of minute verification or further proceedings where the intentional tampering of records is suspected and that too after giving the officer sufficient opportunity to explain the circumstances. Thanking you,

Yours sincerely, Sd/-, (V. RAGHAVENDRA SARMA) General Secretary

UNITY IS STRENGTH

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4th ZONAL CONFERENCE OF WARANGAL WAS HELD ON 03-03-2013

The 4th Zonal Conference of Warangal Zone was held on 03-03-2013 at Hotel Ashoka, Hanamkonda.

Around 200 comrades have attended the meeting. 25 Executive Committee members also attended the meeting.

Sri J.R.K. Sarma, Chief Manager and Chairman, Reception Committee welcomed the dignitaries to the dias and gave

his welcome address.

Com J.Srinivas, Asst General Secretary gave his introductory address and expressed his happiness for conducting the conference.

Com. N.V. Satyanarayana, President AIABOF presided over the meeting, Com N.Raja Gopal Reddy, Chairman AIABOF inaugurated the conference.

The Chief Guest of the Conference Sri V. Gopala Krishna, DGM and Zonal Manager addressed the officers and explained the scenario in the bank and the zone. The Guests of Honour Sri Bruhaspathi Reddy and Sri M. Shankaraiah, Asst General Manager greeted the conference.

Com. P. Devadas, Treasurer and Com. D.Venkateswarlu, Deputy General Secretary and territorial incharge of Warangal Zone have addressed the conference.

The Chief Speaker of the Conference, Com. V. Raghavendra Sarma, General Secretary, AIABOF has addressed the conference and explained the industrial scenario and recent developments in our bank.

The Business Session has commenced at 3.00 P.M. after the lunch break. There was a lively debate in the session. After the reply from the Asst. General Secretary in respect of Zonal issues and the General Secretary in respect of all other matters, the house approved the Zonal Secretary's report and thereafter approved the reconstitution of the Zonal Committee.

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