(a) whether the Government has any proposal to allow seventy five per cent of the total
interest subvention to the cooperative banks to be kept with them as interest free revolving
fund ;
(b) if so, the details thereof and if not, the reasons therefor; and
(c) the other steps taken/being taken by the Government in this direction?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (c): The Task Force on Credit Related Issues under the Chairmanship of Shri Umesh
Sarangi, the then Chairman, NABARD, has recommended that a portion of the anticipated interest
subvention amount may be parked with the Banks at the beginning of the year and adjusted at
the end of the year as an incentive for Banks. The Interest Subvention Scheme is being
implemented by the Government of India since 2006-07 to make short-term crop loans upto
Rs. 3 takh for a period of one year available to farmers at the interest rate of 7 percent
per annum. The Government of India has since 2009-10 been providing additional interest
subvention to prompt payees farmers, i.e., those who repay their loans in time. The additional
subvention was 1% in 2009-10, 2% in 2010-11 and 3% in 2011-12. Further, in order to discourage
distress sales, the benefit of interest subvention was made available in the year 2011-12 to
small and marginal farmers having Kisan Credit Card for.a further period of up to six months
post harvest on the same rates as available to crop loans against negotiable warehouse receipts
for keeping their produce in warehouses. The Interest Subvention Scheme for the year 2011-12 has
been continued in 2012-13 as well.
The Scheme is being implemented by NABARD in respect of regional rural banks and cooperative
banks. The details of Interest Subvention released by Gol through NABARD to Cooperatives & RRBs
are as under:
(Rs. Crore) Agency Interest Subvention Interest Subvention Interest Subvention Scheme 2009-10 Scheme 2010-11 Scheme# 2011-12# On going scheme
Cooperative banks 475.25 702.82 59 10# Regional Rural Banks 269.58 321.56 107.79 Total 744.83 1,024.36 166.89