Bankers see political dimension to move
The finance ministry has advised banks to reduce interest rates on agricultural credit and ensure that farmers are able to borrow funds at single-digit interest rates.
At a meeting with bank chiefs earlier this week, officials from the banking division in the finance ministry tried to impress upon them to extend credit below the prime lending rate (PLR) of 11-11.5 per cent, a bank executive who attended the meeting told Business Standard.
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Finance ministry officials confirmed the development and said the government was trying to convince banks to cut interest rates on farm credit.