The performance audit will include examination of records of Department of Agriculture Cooperation and Farmers Welfare, Agriculture Insurance Company of India Limited, State Agriculture Department and other related departments, the RBI said while asking banks to provide access to related records to the auditor.
"This audit is proposed to be conducted in the states of Andhra Pradesh, Assam, Gujarat, Haryana, Himachal Pradesh, Orissa, Maharashtra, Rajasthan and Telangana with the help of the offices of the Principal Accountant General/Accountant General (Audit) in the respective states," it said.
"In view of the above, you (banks) are advised to facilitate access to your records pertaining to crop insurance schemes to the audit teams...," the RBI said.
In another notification, RBI said that in view of the difficulties faced by farmers in areas affected by natural calamities, "banks are advised to act with empathy".
Banks have been asked to consider restructuring and granting fresh loans without waiting for the receipt of the insurance claims, in cases where there is reasonable certainty of receipt of the claim.