Comments
The State level Bankers’ Committee which met in the presence of Maharashtra Chief Minister Uddhav Thackeray in Mumbai, has approved a resolution asking for restoration of 2 per cent interest subvention.
In a letter to Agriculture Minister Narendra Singh Tomar, Thackeray said a circular issued earlier this year by the farm ministry and Nabard (National Bank for Agriculture and Rural Development) said that the 2 per cent interest subvention scheme for short-term crop loans had been modified and the subsidy would not be available from fiscal 2022-23.
“This (discontinuation of scheme) will have an adverse impact on the financial position of cooperative banks and, in turn, will have a serious negative impact on the distribution of short-term crop loans to farmers in the state,” the CM said in the letter.
Thackeray said 2 per cent interest subvention or subsidy available to cooperative as well as nationalised banks under the scheme, had enabled these lending institutions to disburse short-term crop loans to farmers at concessional rates.
Credit Plan
The Bankers’ Committee also approved a Rs 26 lakh 33,000 crore credit plan, which is 45.37 per cent higher than that of last year. The agriculture sector has been allocated Rs 1 lakh 26,000 crore, which includes Rs 64,000 crore for crop loans.
Thackeray said banks should extend loans to farmers as the monsoon is all set to commence.
(with PTI inputs)
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.