CRN

ÿÍ∑§Ù ’Ò¥∑§ UCO BANK 320/ 2010-11

Head Office : (÷Ê⁄Uà ‚⁄U∑§Ê⁄U ∑§Ê ©U¬∑˝§◊)
Risk Management Deptt. ‚ê◊ÊŸ •Ê¬∑§ Áfl‡flÊ‚ ∑§Ê Circular No.
10, B.T.M. Sarani (4th Floor) (A Govt. of India Undertaking) CHO/RM/33/2010-11
Kolkata - 700 001 HONOURS YOUR TRUST Dated : 18.01.2011

To all the Branches / Offices in India :

Sub : Advances to owners of Cold Storages/Warehouse Units

for on-lending to rentiers/traders

Gist / Action Points

Lending to owners of cold storage/ warehousing units for on-lending
to rentiers/traders stands discontinued with immediate effect and
Agricultural Produce Marketing Loan Scheme stands modified.

Attention of branches/offices is invited to Manual of Instructions, Volume-VII

(Advances – Priority Sector – Agriculture), Chapter No. 20 and Head Office
Circular No. CHO/CR/PS/39/2003-04 dated 18.11.2003 which contain guidelines
for extending cash credit limit for working capital to cold storage units, cash credit
limit to cold storage/ warehouse units/godown for on-lending to rentiers/traders
and produce marketing loans to farmers against pledge of cold storage/ware-
house receipts.

To ensure that funds lent are used for intended purpose and are easily verifiable,
two of the above schemes stand modified as under, with immediate effect :

A. Cash Credit Limit for working capital to cold storage units

No change is proposed and lending may continue as per provisions of the
scheme.

B. Cash Credit Limit to owners of cold storage/warehouse units/

Godowns for on-lending to rentiers/traders
With an aim to mitigate the risks inherent in the scheme and to ensure
proper end-use of funds, it has been decided to discontinue lending
under the scheme with immediate effect. The existing accounts be
allowed to continue till their respective due dates.

However, direct lending to owners of cold storage/warehouse units against

hypothecation of their own stocks may continue as per extant provisions.
C. Agricultural Produce Marketing Loan to farmers against pledge of
cold storage/warehouse receipts
In the light of the experience gained in funding these activities, following
changes are being made to the extant guidelines :

Financing under the scheme shall be allowed only against agricultural

produce stored in the
i) Warehouses/cold storage units owned by Central and State Government
entities.
ii) Approved warehouses/cold storage units owned/managed by National
Bulk Handling Corporation Ltd. (NBHC) and National Collateral
Management Services Limited (NCMSL).
iii) Cold storage units financed by our Bank, whose accounts are running
regular.

Branches/Offices are advised to note the above changes carefully for compliance.

( S. K. Sharma )
Deputy General Manager
Risk Management

“WE SHALL MAKE UCO – A TOP CLASS BANK”

CLARION PRINTING
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