NABARD withdrew the Credit Authorization Scheme (CAS) in the year 2000 and introduced Credit Monitoring Arrangement (CMA) scheme in lieu of CAS.
As per CMA guidelines, Banks are required to submit prescribed CMA returns I-V on quarterly basis to NABARD within one month from the date of end of each quarter. Further, the Banks are required to submit a copy of appraisal note/office note put up to the Board/Sanctioning Authority in respect of large advances, for post scrutiny by NABARD, as required under CMA guidelines.
As per CMA guidelines, the Banks are also required to keep their exposure within the prescribed limits. The limits prescribed in CMA are as followed:
1)Overall Exposure:
The overall exposure to sugar sector by SCB/DCCB should not exceed 40% of the maximum ILR reached by the respective Banks during the previous year.
2)Exposure to units out side the Cooperative fold:
The aggregate finance by SCB/DCCB to Individuals and units outside the Co-operative fold should not exceed 25% of the maximum Internal Lendable Resources (ILR) reached by the respective Banks during the previous year.
3)Unit-wise Exposure:
a)The total lending by SCB to a single cooperative or outside cooperative sugar factory should not exceed 25% of the capital fund of the SCB.
b)The total lending by DCCB to a single cooperative sugar factory should not exceed 50% of the capital fund of the DCCB.
c)The total lending by DCCB to a single sugar factory outside the cooperative fold should not exceed 25% of the capital fund of the DCCB.
