Agri Lending
Nabard partners with RBI Innovation Hub to fast-track digital agri lending
The National Bank for Agriculture and Rural Development (NABARD) on Thursday said it has partnered with Reserve Bank's arm RBIH to put in place a system which will enable faster processing of agricultural loans. NABARD said it will integrate its e-KCC loan origination system portal with the Public Tech Platform for Frictionless Credit (PTPFC) of Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the RBI. NABARD has developed the loan origination system portal to facilitate digital Kisan Credit Card (KCC) loan processing for cooperative banks and Regional Rural Banks (RRBs). "The digitisation of agricultural lending will ensure instant doorstep delivery of credit to farmers while improving the efficiency of banks, advancing NABARD's mission of fostering rural prosperity," NABARD chairman Shaji K V said. The partnership agreement was signed by the NABARD chairman and Rajesh Bansal, CEO, RBIH. Through the integration with PTPFC, about 351 district and state cooperative
 "Nabard partners with RBI Innovation Hub to fast-track digital agri lending")
1.5% interest subvention on short-term agri loans of up to Rs 3 lakh: Govt
The Union Cabinet on Wednesday approved interest subvention of 1.5 per cent on short-term agriculture loans of up to Rs 3 lakh for all financial institutions, a move aimed at ensuring adequate credit flow in the farm sector. The Cabinet, chaired by Prime Minister Narendra Modi, has approved restoring interest subvention on short-term agriculture loans of 1.5 per cent for all financial institutions, Information and Broadcasting Minister Anurag Thakur said. The 1.5 per cent interest subvention will be provided to lending institutions (public and private sector banks, small finance banks, regional rural banks, cooperative banks and computerised Primary Agriculture Credit Societies) for the financial year 2022-23 to 2024-25 for providing short-term agri loans of up to Rs 3 lakh to farmers. "This increase in Interest Subvention support requires additional budgetary provisions of Rs 34,856 crore for the period of 2022-23 to 2024-25 under the scheme," an official statement said. The incre
 "1.5% interest subvention on short-term agri loans of up to Rs 3 lakh: Govt")
Sluggish agri lending in states with debt waiver scheme
States which rolled out farm loan waiver schemes in the recent months are witnessing sluggish growth in rural bank lending. Agriculture accounts for more than 80 per cent of lending in rural areas. Across the country, agriculture lending growth has come down to around 5.8 per cent on a year-on-year basis as on September 2017, against about 15.9 per cent in the same period last financial year. This is one of the steepest fall in agriculture lending by banks in the last few years. Fall in agriculture lending is also likely to impact food grain production, which is already showing a downward trend. According to the first advance crop estimates for foodgrain production by the government, total food grain production in the country in 2017-18 is pegged at around 134.67 million tonnes, against 135.03 million tonnes as par the first advance estimates in 2016-17.In Maharashtra, rural lending by banks in Q2 of the present financial year was around 6 per cent less compared to same period last .
 "Sluggish agri lending in states with debt waiver scheme")
