Transfer of Funds by Rythu Sadhikara Samstha to the Farmers’ Accounts

GOVERNMENT OF ANDHRA PRADESH ABSTRACT
Farmers’ Empowerment Programme - Farmers’ Debt Redemption – Transfer of Funds by Rythu Sadhikara Samstha to the Farmers’ Accounts – Supplementary Orders Issued FINANCE (EBS-II – A&C) DEPARTMENT
G.O.MS.No. 224 Dated 16-12-2014
Read the following:
1. GO Ms No. 218 Finance (EBS-II – A&C) Department dated 04.12.2014


ORDER:
1. In the reference read above, the Government issued orders detailing the process for transfer of funds from the Rythu Sadhikara Samstha to the farmers’ accounts as part of the agricultural debt redemption policy of the Government. However, after considering the representations received from the Banks, the Government hereby order for the following amendment to the orders issued in the reference read above.

2. The last sentence in the para-11 on page-3 of the order, i.e., “the Branch Manager shall appropriate the insurance claim, if any, received from the Agriculture Insurance Company of India Ltd (AIC), by notionally reducing the outstanding balances in the respective accounts as on 31 December 2013, before computing the amount of benefit” shall stand deleted from the captioned GO. Accordingly, the insurance claim, if any, received from the AIC need not be reduced from the outstanding balances in the respective accounts as on 31 December 2013, while computing the benefit amount.

3. Some Banks have represented that since all branches are on core banking system (CBS), there would be no need to open an escrow account at every branch level, as all
transactions can be processed through a single Nodal escrow account. The Government accepts this proposition and orders that the Banks on CBS may operate all transactions
through a single Nodal escrow account as long as the other parameters are strictly adhered to. However, those Banks, especially the co-operative banks, that do not operate
all branches through an integrated system would have to establish a separate escrow account in each branch.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)  DR PV RAMESH IAS
 PRINCIPAL FINANCE SECRETARY (R&E)