Mumbai: The Reserve Bank of India has directed urban cooperative banks not to treat the accounts of the farmers covered under the Debt Relief Scheme as bad if they agree to repay 75 percent of due by June 30, 2010. The RBI directive follows the government decision announced in the Union Budget 2010-11. "Where the farmers covered under the Debt Relief Scheme have given the undertaking, agreeing to pay their share under the OTS (one time settlement), their relevant accounts may be treated by banks as standard/performing," the Reserve Bank said in a statement. It said banks should make adequate provision for the loss in present value (PV) terms for all receivables due from the borrowers. The government has extended the deadline in view of the drought in some states and the severe floods in others last year. Earlier, it had decided to make the accounts of "other farmers" eligible for debt relief of 25 percent, provided they cleared the balance 75 percent by December 31, 2009. The government had also said that banks and lending institutions were allowed to receive less than 75 percent of the debt amount under the OTS, provided they bore difference because they would be compensated by it only for the 25 percent of the amount under the debt relief.