What changed
RBI has decided to make the National Horticulture Board a permanent member of SLBC for Uttaranchal, and Horticulture Boards of all States/Union Territories a permanent member of SLBC/UTLBC at all India level. This follows a recommendation from a Working Group on improvement of Banking Services in Uttaranchal, which highlighted NHB's role in horticulture and floriculture credit.
What it means for you
Banks must now include NHB in all SLBC/UTLBC meetings, enabling direct coordination for horticulture credit schemes. This aligns with government priority for investment in the sector and expects proactive bank cooperation. It creates a single-window clearance mechanism for horticulturists and floriculturists, potentially increasing credit flow to this segment.
What you must do
- Update SLBC/UTLBC membership lists to include National Horticulture Board as a permanent member.
- Ensure NHB representatives are invited to all forthcoming SLBC/UTLBC meetings.
- Collaborate with NHB and state government departments to formulate horticulture credit schemes.
- Facilitate single-window clearance for credit needs of horticulturists and floriculturists through NHB involvement.
Who it affects
All SLBC and UTLBC convenor banks, National Horticulture Board (for Uttaranchal), Horticulture Boards of all States/Union Territories (for respective SLBCs/UTLBCs), Horticulturists and floriculturists seeking credit, State government departments dealing with horticulture
Why was NHB added to SLBCs?
A Working Group on improvement of Banking Services in Uttaranchal recommended NHB's inclusion to improve credit access for horticulture and floriculture, given the sector's importance and government priority.
What is the expected benefit for banks?
Banks can leverage Horticulture Board expertise to design targeted credit schemes and streamline loan processing through a single-window approach, potentially increasing lending to the horticulture sector.
Does this apply to all states?
Yes, RBI has decided to include Horticulture Boards of all States/Union Territories as permanent members of SLBCs/UTLBCs at all India level.