Hereafter short term crop loans extended only through KCC is eligible for interest subvention scheme

Reserve bank of India advised all the scheduled commercial banks that with effect from April 1, 2020, Short Term Crop Loans should be extended only through KCC to be eligible for Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI). According to the notification, the Ministry of Agriculture & Farmers Welfare vide their Office Memorandum,…

The regime of External Benchmark Based Lending and switch-over rules

External benchmark rate means the reference rate which includes the policy Repo rate of RBI, Government of India’s 3-Months and 6-Months Treasury Bill yields published by Financial Benchmarks India Private Ltd (FBIL), and any other benchmark market interest rate published by FBIL. The interest rate on banks’ lending based on external benchmark shall be reset…

RBI permits one-time restructuring of MSME advances till December 31, 2020

RBI permits one-time restructuring of MSME advances till December 31, 2020 RBI on Tuesday (11.02.2020) allowed a one-time restructuring of existing loans extended to MSMEs by Banks and NBFCs and permitting them to classify such assets as ‘Standard’ without a downgrade in the asset classification if the following conditions are met. • The aggregate of…

Interest Subvention Scheme for MSMEs: Modified operational instructions

Reserve Bank on Wednesday (February 5, 2020) said that the statutory auditor’s certificate in respect of interest subvention claim may be submitted by June 30, 2020, and in the meantime settle claims based on internal/concurrent auditor certificate. As per earlier covenants, the interest subvention would be released only on the basis of claim duly certified…

Agriculture finance and government initiatives in escalating viable financial services to the sector

Agriculture is back bone of Indian economy which provides employment and livelihood to a large section of the Indian population. As per ILO estimate of 2018, approximately 44% of the working population is employed in the agriculture and allied sector. The vast farming area, diverse agriculture and a large population dependent on agriculture and also…

Features of National Agriculture Market Scheme (e-NAM)

National Agriculture Market (eNAM) is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities. The scheme envisages the implementation of the NAM by setting up of an appropriate common e-market platform that would be deployable in selected 585 regulated wholesale markets in States /…

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) features

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) has been formulated in 2015 by amalgamating ongoing schemes viz. Accelerated Irrigation Benefit Programme (AIBP) of the Ministry of Water Resources, River Development & Ganga Rejuvenation (MoWR, RD&GR), Integrated Watershed Management Programme (IWMP) of Department of Land Resources (DoLR) and the On-Farm Water Management (OFWM) of Department of Agriculture…