To support financing of crop loans to primary agricultural credit societies (PACS) and farmers sowing their rabi crop, the RBI has directed banks with currency chests to ensure adequate cash supply to district central cooperative banks (DCCB) and regional rural banks (RRB).
Further bank branches located in agriculture produce market committees (APMCs) may also be given adequate cash to facilitate smooth procurement, RBI added. The move seeks to ensure unhindered farming operations by supporting farmers financially.
A sum of ₹35,000 crore would be required by the DCCBs for sanction and disbursement of crop loans to the farmers at the rate of ₹10,000 crore per week.
NABARD would be utilising its own cash credit limits up to about ₹23,000 crore to enable the DCCBs to disburse the required crop loans to PACS and farmers, RBI added.