2% Interest Subvention on Short-Term Crop Loans for 2007-08 (Circular May 10, 2007)

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 71 kb ) Interest Subvention Scheme for Short Term Crop Loans extended RBI/2006-2007/391 RPCD.No.PLFS.BC. 90/05.04.02/2006-07 May 10, 2007 The Chairman/Managing Director All Public Sector Banks Dear Sir, Union Budget – 2007-08 – Proposal for continuation of 2 per cent interest subvention scheme for short-term crop loans in 2007-08 As you are aware, the Hon’ble Finance Minister, in his Budget Speech (paragraph 46) for 2007-08 had announced as follows: " The two percent interest subvention scheme for short-term crop loans will continue in 2007-08 ." 2..In pursuance of this announcement, Government will provide interest subvention of 2% p.a. to Public Sector Banks in respect of short-term production credit up to Rs.3 lakh provided to farmers. This amount of subvention will be calculated on the amount of the crop loan disbursed from the date of disbursement/drawal up to the date of payment or up to the date beyond which the outstanding loan becomes overdue i.e. March 31, 2008 for Kharif and June 30, 2008 for Rabi, respectively, whichever is earlier. This subvention will be available to Public Sector Banks on the condition that they make available short-term credit at ground level at 7% p.a. 3 . Banks are advised to immediately , submit their estimates of short-term production credit to farmers up to Rs.3 lakh for Kharif and Rabi 2007-08 (separately) to enable us to provide Government with an estimate of the likely amount of subvention. Please note that the estimates should be realistic in nature. 4. Banks are also advised as under :- i) In order to enable Government to provide subvention, banks are required to submit their claims on a half-yearly basis as at September 30, 2007 and March 31, 2008, within one month from the end of the respective half years. The format for the purpose is enclosed. ii) The claim for the half-year ending March 31, 2008 should also accompany a Statutory Auditor’s certificate certifying that the claims for subvention of Rs._________(amounts claimed for each of the half-years to be specified) for the entire year ended March 31, 2008 as true and correct. Final settlement of the claims will be done only on receipt of this certificate. iii) Claims may be submitted to the Chief General Manager-in-Charge, Rural Planning and Credit Department, Reserve Bank of India, Central Office, Shahid Bhagat Singh Road, Fort, Mumbai – 400 001. 5. In case of RRBs and co-operatives, a separate circular will be issued by NABARD. Yours faithfully, ( A.K.Pandey) General Manager Provision of Short-term agricultural credit for the year 2007-08 Statement for the half year ended September 2007/March 2008 (Amount in Rs Lakh) Total short term production credit at 7% p.a Amount of subvention claimed No. of accounts. Amount Loans up to Rs.50,000/- Loans above Rs.50,000/- and up to Rs.3 lakh. We certify having disbursed the above loans at 7% p.a. by way of short- term production credit to the farmers during the half year ended ________________. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/391 · issued 10 May 2007. The plain-English explanation above is BankPulse’s own independent summary.

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