The National Bank for agriculture and rural development announced that it would finance a loan of 12767 crores from its resources to state cooperative banks and regional rural banks for lending to the farmers. The money is lent at 4.8% for a period of a year.
“The announcement was made on Tuesday, May 5. “This week, a sum of Rs 12,767 crore was disbursed to StCBs and RRBs across the nation in an attempt to increase their capital during the ongoing lock-down conditions for extending farmers’ credit,” NABARD said.
Last month, the Reserve Bank of India provided NABARD with a loan of around 25,000 crores for the refinancing of regional rural banks (RRBs), cooperative banks and microfinance institutions (MFIs). The loan has yet to be disbursed from the RBI refinance window by the development finance institute.
Since the second half of March 2020, NABARD has registered total loan disbursements of ~30021 crores. In this national lock-down situation, this effort was to benefit the rural banks. Rural banks have received NABARD loan disbursements under the refinancing scheme in a total of 15 states. Banks in West Bengal, Tamil Nadu, Andhra Pradesh, Bihar, Chattisgarh, Telangana, Uttar Pradesh, Kerela, Haryana, Karnataka Pradesh, Odisha, Madhya Pradesh,