Scheme Of Bank Finance To Rice Millers

The salient features of the scheme :

Working Capital Assessment :

Bank may consider enhancement in the limit of parties having satisfactory performance during the last season. The rice mill units are categorized as small (manufacturing) sector units and as per RBI guidelines these units are eligible for getting working facility on the basis of Nayak Committee recommendations. However, the Rice Mills being seasonal industry, Bank have/had adopted any one of the following methods for sanctioning a rational and required working credit limit to them, which will continue to be applied.

  • As per Nayak Committee recommendations – MPBF- 20% on the basis of projected sale turnover.
  • IInd method of lending as per Tandon Committee norms.
  • Under traditional method of lending adopted in our bank for assessment of working capital requirements of rice mill which is a seasonal industry, the maximum inventory and receivables holdings have been proposed to be continued as per last year’s Rice Mill policy, which are as under:-

  • (No. of Days holding)
    Paddy Rice Debtors
    60 45 90

  • The level of creditors shall be taken on an average for last financial year subject to maximum 15 days since during peak period it remains very low and working capital is assessed on the basis of peak period requirements. The level of creditors during current year will also depend upon the availability of paddy i.e. its shortage may reduce the level of creditors to a NIL level also.
Rate Of Interest :

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