Circular and Press Statement After a Bad Rabi Season
The District Development Manager of a rural bank must write to 46 branch heads after a bad rabi season. Data: 1,870 crop loans worth ₹38.4 crore are due between 1 April and 31 May; 214 farmers have applied for restructuring; the state has announced a ₹6,000 per hectare input subsidy payable after verification, not a loan waiver; some branch staff have been telling farmers that the government will waive everything; a regional TV channel has run a story claiming the bank is harassing farmers. Head office wants a circular that is firm on repayment but explains restructuring and avoids a run on the branch. The circular must be 200 words, and a 150-word press statement is also needed. The bank's language policy is formal but plain English.
1. Outline the content and tone of the 200-word circular to branch heads. State what must be included and what must be avoided, with reasons.
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Content and tone
- Purpose and facts first: the rabi season was adverse; loans are due 1 April–31 May; there is no loan waiver; the state's ₹6,000/hectare input subsidy is payable only after verification.
- What branches must do: acknowledge every restructuring application within three working days; assess eligibility against the bank's restructuring policy; explain the subsidy process; stop any verbal assurance of waiver; record promises in the loan file.
- What to avoid: party-political blame, speculation about future government decisions, technical jargon, and a defensive denial of harassment.
- Tone: firm on repayment, empathetic on process, and precise on dates and eligibility.
Reason: a circular is an instruction document, not a press release. Branch staff repeat the last sentence they hear; if the circular does not state no waiver in plain words, staff will fill the gap with rumour. Equally, a threatening tone increases panic and pushes borrowers to the media. Include a named nodal officer and a weekly reporting line.
2. Draft the opening paragraph and the closing instruction of the circular in about 80 words.
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Opening: 'This circular sets out how branches must handle crop loans falling due between 1 April and 31 May after an adverse rabi season. It is issued because some borrowers have been told that all loans will be waived; no waiver has been announced by the Government or the bank.'
Closing: 'Branch heads must acknowledge every restructuring application within three working days and record the acknowledgement in the branch register. Any staff member who tells a borrower that a waiver is certain will face disciplinary action. Send weekly progress to the District Office by Friday 5 p.m.'
Why this works: the opening establishes the problem without blaming staff or the government, and kills the central rumour with a direct negative. The closing converts the instruction into a measurable action (three days, register, weekly report) and a clear consequence.
3. Identify three phrases or claims to avoid in the 150-word press statement and explain the risk each creates.
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- 'We never harass farmers.' A bare denial repeats the accusation and sounds defensive; it invites the follow-up question of why the allegation was made. Better to describe the restructuring window and the acknowledgement rule.
- 'All genuine farmers will be protected.' 'Genuine' is undefined and 'protected' can be read as a waiver promise. A news report can turn this into 'bank promises relief', creating a fresh expectation the bank cannot meet.
- 'The government will announce a package soon.' This is speculation about a third party's decision. If no package comes, borrowers feel betrayed and the bank is blamed for raising false hope.
Principle: in a stress statement, state only what the bank controls - dates, eligibility, process, contacts - and use verbs in the active voice. Avoid adjectives such as 'genuine', 'wilful' and 'harassment' unless they are defined.