Quick Summary
Regional Rural Banks surpass prescribed lending target to Small Marginal Farmers SCs/STs during 2018 to 2021 Regional Rural Banks (RRBs) have been playing an important role in purveying agricultural credit, particularly to Small and Marginal Farmers (SF/MF) and weaker sections of the society. This was stated by the Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today. The Minister stated that in terms of the revised guidelines
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FAQ :
The RBI mandates RRBs to lend at least 18% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposure (CEOBE) to the Agriculture sector. Out of this, a minimum of 9% must be for Small and Marginal Farmers (SMFs). Additionally, 15% of ANBC or CEOBE is prescribed for lending to Weaker Sections, which includes SMFs and SCs/STs.
Yes, the Union Minister of State for Finance stated that RRBs surpassed the prescribed targets for lending to SMFs and Weaker Sections during the years 2018-2019 to 2020-2021.
RRBs have an enhanced target of 75% for lending to the priority sector, which is significantly higher than the 40% target applicable to Commercial Banks.
Measures include an interest subvention scheme for crop loans, the Kisan Credit Card (KCC) scheme, an increased limit for collateral-free agriculture loans, and a new KCC scheme for Animal Husbandry and Fisheries farmers. Dispensing with 'no dues' certificates for small loans and promoting Joint Liability Groups also help.
Yes, NABARD provides refinance to RRBs at a concessional rate of interest to supplement their resources for both short-term and long-term lending, aiming to increase ground-level credit and boost capital formation in agriculture.
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