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RBI asks banks to extend farm loans eligible for subvention only via KCCs

 

The Reserve Financial institution of India has encouraged banking institutions to be certain that all short term crop loans qualified for desire subvention and prompt compensation incentive reward are prolonged only through the Kisan Credit rating Card (KCC) with influence from April 1, 2020.

Even further, the present short term crop loans which are not prolonged through KCC will need to be converted to KCC loans by March 31, 2020.

Accordingly, reimbursement of desire subvention for short term crop loans through non-KCC accounts will not be regarded as further than March 31, 2020, the RBI stated in a round.

To offer short term crop loans up to Rs 3 lakhs to farmers at an desire charge of 7 for every cent, the govt presents desire subvention of two for every cent to the lending institutions. It also delivers an supplemental desire subvention of 3 for every cent to these kinds of of people farmers shelling out in time. This also implies that the farmers shelling out instantly get short term crop loans at 4 for every cent.

The KCC plan aims to offer adequate and well timed credit history guidance from the banking system underneath a one window with a flexible and simplified procedure to the farmers for their cultivation and other needs.

The plan is created to meet up with fees relating to post-harvest make marketing consumption necessities of farmer house functioning funds for servicing of farm property and routines allied to agriculture investment decision credit history prerequisite for agriculture and allied routines.

The beneficiaries underneath the KCC plan are issued a Good card / Debit card (Biometric sensible card suitable for use in the ATMs/Handheld Swipe Equipment and able of storing adequate facts on farmers identification, property, land holdings and credit history profile and so on).