The Reserve Bank of India has asked public sector banks to simplify their loan processes as well as disburse farm loans speedily as the government has set a target to double farmers’ income by 2022.
The Reserve Bank of India has asked them to work closely with Nabard to prepare potential linked plans and annual credit plans towards the goal to increase farm sector income. They will also be required to keep ‘Doubling of Farmer’s Income by 2022′ as a regular agenda under Lead Bank Scheme in various forums such as SLBC, District Consultative Committee, District Level Review Committee meetings and Block Level Bankers’ Committee.
Acceleration in income generation is significantly dependent on better capital formation in agriculture, the RBI said in a notification to State Level Bankers’ Committee (SLBC) Convener Banks and Lead Banks. “Towards this, banks should revisit their documentation for crop loans, simplify them where required and ensure speedy sanctioning and disbursal of loans within specified time limits,” RBI said.
In terms of Govt. of India instructions for 2013-14, all the crop loans upto Rs. 3 lakh are being disbursed at the interest rate of 7% p.a. Govt. of India also provides interest subvention of 3% p.a. to prompt repaying farmers, thus making available the crop loans to them at 4% p.a.
The Reserve Bank of India has asked them to work closely with Nabard to prepare potential linked plans and annual credit plans towards the goal to increase farm sector income. They will also be required to keep ‘Doubling of Farmer’s Income by 2022′ as a regular agenda under Lead Bank Scheme in various forums such as SLBC, District Consultative Committee, District Level Review Committee meetings and Block Level Bankers’ Committee.Acceleration in income generation is significantly dependent on better capital formation in agriculture, the RBI said in a notification to State Level Bankers’ Committee (SLBC) Convener Banks and Lead Banks. “Towards this, banks should revisit their documentation for crop loans, simplify them where required and ensure speedy sanctioning and disbursal of loans within specified time limits,” RBI said.
In terms of Govt. of India instructions for 2013-14, all the crop loans upto Rs. 3 lakh are being disbursed at the interest rate of 7% p.a. Govt. of India also provides interest subvention of 3% p.a. to prompt repaying farmers, thus making available the crop loans to them at 4% p.a.