(a) whether Government proposes to establish a corpus fund for the use of Regional Rural
Banks (RRBs) to facilitate lending at low cost in rural areas;
(b) if so, the details thereof, and
(c) if not, the reasons therefor?
(a) whether Government proposes to establish a corpus fund for the use of Regional Rural
Banks (RRBs) to facilitate lending at low cost in rural areas;
(b) if so, the details thereof, and
(c) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) No, Sir.
(b) Does not arise
(c) National Bank for Agriculture and Rural Development (NABARD) extends short-term
refinance to Regional Rural Banks( RRBs) for financing Seasonal Agricultural Operations
(SAO) at the concessional refinance rate of 4.5% per annum. Further, the scheme of
providing 2% interest subvention to RRBs on their own involvement of funds in disbursement
of crop loans upto Rs 3.00 lakh per borrower at 7% rate of interest per annum has been
extended for the year 2007-08. Since, NABARD is refinancing RRBs at concessional rate
and Government is providing interest subvention for lending at lower rate in rural areas,
there is no proposal at present to establish a separate corpus fund for the purpose.