THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL) :
(a) (i) The details of short-term refinance provided by NABARD to State Cooperative Banks
(SCBs) for financing seasonal agricultural operations are as given below:
(Rs. Crore)
Year ST (SAO) Maximum Percentage Credit Limits Outstanding of Sanctioned borrowings Utilisation
1997-98 5210.03 4446.76 85.3
1998-98 5993-99 4498.01 75.0
1999-2000 6094.51 4951.45 81.2
(ii) The amount of refinance provided by NABARD to State Cooperative Banks (SCBs) under
investment credit during 1997-98, 1998-99 and 1999-2000 is Rs. 333.54 crores, Rs. 340.84
crores and Rs. 460.10 crores respectively under agriculture sector.
(b) NABARD`s support to banks is by way of refinance, whereby banks disburse credit
and thereafter claim refinance. Cooperative Banks add their own resources also to refinance
given by NABARD, for lending to their constituents.
(c) The share of NABARD`s refinance to ground level credit flow to agriculture sector
for last 3 years is given below :
(Rs. Crore)
Year Total credit flow NABARD`s Share of to Agriculture Refinance NABARD`s Sector from Refinance commercial banks, cooperative banks and RRB`s
1997-98 31956 922 31%
1998-99 36897 10747 29%
1999-2000 41764 11842 28%
$ Provisional. Estimated.
(d) In our country a multi-agency approach for dispensing agriculture credit is in operation
through a wide network of branches of commercial banks, cooperative banks and Regional Rural
Banks. The ground level flow of credit to agriculture sector has increased from Rs. 31,956
crores in 1997-98 to Rs. 41,764 crore in 1999-2000. This is expected to go upto Rs. 51,460
crore during the current year. The Reserve Bank of India and NABARD have taken several measures
to further strengthen the flow of credit to farmers. Some of these are:
(i) Introduction of cash credit facility for meeting composite credit requirements of farmers
having good track record;
(ii) Introduction of the Kisan Credit card Scheme for agricultural borrowers;
(iii) Banks have been advised to open specialized agricultural branches to take care of
financing of high-tech agricultural projects;
(iv) RBI has introduced simplification of loan applications, delegation of powers to branch
managers, introduction of composite cash credit limit to farmers, introduction of new loan
products, cash disbursement of loans, discretion to banks on matters relating to margin/
security requirements for loans above Rs.10,0007- and dispensing with ``No Dues Certificates`
as a compulsory requirement;
(v) Any shortfall in the target of lending to agriculture has to be contributed to Rural
Infrastructure Development Fund (RIDF) which has been established with NABARD for assisting
Slate Governments and State-owned Corporations in quick completion of on-going projects
relating to rural infrastructure.
