Question : CREDIT FACILITY OF NABARD



(a) whether the Government received request to raise the credit facility (credit lin

(e) of NABARD from existing Rs.6500 crore to Rs.15000 crores;and

(b) if so,the details thereof and the response of the Government thereto?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANDRAO V. ADSUL)

(a) & (b) : Reserve Bank of India (RBI) has been sanctioning General Line of Credit (GLC) to National Bank for Agriculture and Rural Development (NABARD) for meeting the production/marketing refinance requirements of State Co-Operative banks (SCBs)/District Central Co-operative Banks (DCCBs) and Regional Rural Banks (RRBs). Credit limit of Rs.6500 crores have been sanctioned during each of the financial years 2001-02,2002-03 and 2003-04.RBI is not in favour of increasing the GLC limit in view of its monetary implications.