The Assam Co-operative Apex Bank Ltd had to take up financing of the Tea Gardens in 1950 due to non- availability of proper finance to the Indian owned small and medium sized gardens from other financing agencies. During the economic crisis in the Tea Industry in 1952, when many indigenously owned gardens were refused finance by commercial Banks and were on the verge of closure, Sri Subhramaniyam Naidu , then Chief Officer, Agricultural Credit Department, RBI came to Shillong in the 1st Part of November 1952 and held discussion with the state Government and the Apex Bank officials for financing such Tea Gardens. In 1953, the Government of India selected this Bank as one of the 9(nine) Banks in India to provide Finance to the Tea Estates under a scheme of Government Guarantee. The Apex Bank’s entry into the field of Tea Finance gave immense relief to the indigenously owned tea gardens in the state as otherwise many of them would have been closed as a result of the slump in the tea market during 1952.
Post 1964, Apex Bank continued financing the tea gardens through a society called the Assam Tea Planters Co-operative Society Ltd. Subsequently since 1973, the member gardens of the said Assam Tea Planters Co-op. Society Ltd started availing direct finance from the Apex Bank.
The Bank continued to finance the Tea Sector till the year 2005. Then the Tea Sector in Assam faced a major recessionary period and as a result large number of tea gardens defaulted. To erase the rise of NPA, the Bank restricted itself from financing the Tea Sector & has been continuing to give more stress on the recovery aspects of the tea loans.
Proceedings under Securitization and Reconstruction of Financial Assets and Enforcement of Security interest (SARFAESI) Act, 2002 .
A Board Level Tea Loan Monitoring Committee comprising of 3(three) Board of Directors and Managing Director of the Bank was constituted to look into each and every aspects of Tea Loan Recovery.