Rs.4,868 crore compensation to public sector banks
July 30th, 2010 - 3:06 pm ICT by IANSNew Delhi, July 30 (IANS) The government Friday approved compensation of Rs.4,868 crore to public sector banks for providing loans to farmers at lower interest rates.
“The Cabinet today gave its approval for the release of a sum of Rs.4,868 crore as interest subvention to Public Sector Banks (PSBs), Regional Rural Banks (RRBs) and Cooperative Banks and to NABARD for refinance to RRBs and Cooperative Banks at concessional rates to reimburse the amount of interest subvention,” said the government in a statement.
National Bank for Agriculture and Rural Development (NABARD) is an apex development bank set up to facilitate credit flow to agriculture, small-scale industries and cottage and village industries.
For the year 2010-11, the government has subsidised short-term crop loans to a maximum of Rs.3 lakh to farmers, with a lower 7 percent interest.
This interest is further brought down to 5 percent in cases when loan repayment happens within the schedule. In the previous fiscal, an interest subvention of one percent was given to farmers who stuck to the payment schedule.
The subsidy scheme has been running since 2006-07.
For the 2010-11 fiscal, the target for agricultural credit flow has been raised to Rs.3,75,000 crore from Rs.3,25,000 crore in 2009-10.
- NABARD registers 24.2 percent loan growth in Bengal (Lead) - Apr 04, 2012
- NABARD registers 24.2 percent loan growth in Bengal - Apr 04, 2012
- 'Government banks lending to key sectors up 19 percent' - Mar 15, 2012
- Biggest challenge before nation is to ensure inclusive growth: Mukherjee - Mar 12, 2011
- Allocation for agriculture up 18 percent - Mar 16, 2012
- Nabard estimates Rs.41,085 crore credit flow in Karnataka - Dec 21, 2010
- Pranab to review banks' performance - Jul 07, 2011
- Agriculture reform at heart of Pranab's budget - Feb 28, 2011
- Loan subvention scheme extended to fishermen (Lead, superseding previous story) - Mar 11, 2011
- Home loan subvention scheme extended to fishermen - Mar 11, 2011
- NABARD plans to set up rural credit bureaus - Jun 13, 2010
- PSU banks lend Rs.86,000 crore to farmers - Dec 03, 2010
- Cabinet approves capital requirement of public sector banks - Apr 23, 2010
- Nabard's Rs.15 bn fund to help women's self-help groups - Apr 14, 2012
- Don't amend cooperative act without our nod: NABARD - Apr 04, 2012
Tags: agricultural credit, agriculture, apex, cooperative banks, credit flow, crop loans, farmers, interest rates, lakh, loan repayment, nabard, national bank, New Delhi, public sector banks, rural banks, rural development, small scale industries, subsidy scheme, subvention, target