(a) the role of the National Bank for Agricultural and Rural Development
(NABARD) in the Regional Rural Banks (RRBs) ;
(b) whether the RRBs are given loans at lower rate by the NABARD,
(c) if so, the details thereof, State-wise; and
(d) the efforts being made by the Government for simplifying Ipans of RRBs
and sufficient availability of funds ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRIS.S. FALANIMANICKAM)
(a): The Role of National Bank for Agriculture and Rural Development (NABARD)
has been defined under various Sections of Regional Rural Banks Act, 1976. As
per the Provisions of RRB Act, 1976,consultation with NABARD is necessary lf the
matters such as location of Head Office of Regional Rural Banks (RRBs), increase or
reduction in Authorized/Issued Capital, appointment, termination and salary/
allowances of Chairmen of RRBs, Amalgamation of RRBs and powers to frame
Rules and Regulations. Besides this,. as a matter of practice, NABARD exercises
supervisory and developmental role in relation to RRBs.
(b) and (c): NABARD provides refinance Assistance at uniform rates of interest
to eligible banks including RRBs.The rate of interest charged by NABARD
depends upon the size and purpose of loans.
(d): NABARD issued necessary guidelines to RRBs in June 2004 for doubling
the flow of credit to agriculture sector in the next three years as also for extending
relief to farmers in distress/arrears by way of rescheduling/restructuring their loans,
relaxing NPA norms, fixation of realistic range of scale of finance and providing for
One-Time Settlement (OTS) Scheme for small and marginal farmers, with a view to
enabling disbursement of fresh loans to the farmers. Besides this, the introduction
of Kisan Credit Cards (KCCs) and financing of agriculturists and other target groups
through self-help Groups are some of the other measures recently introduced to
streamline / simplify rural credit delivery.