Nabard Asks Rrbs To Offer Drought Aid

The National Bank for Agriculture and Rural Development (Nabard) has asked all regional rural banks (RRBs) and the state co-operative banks (StCBs) to take up credit related relief measures including providing additional crop loans at enhanced scales of finance to the farmers affected due to deficiency in rainfall/drought. It also directed them to expedite submission of crop insurance claims, wherever the crops have been insured and affected.

Provision of additional crop loans, which will be as per the recommendations of the district level technical group, is to not only enable the affected farmers to offset the expenditure already incurred by them but also to allow them to undertake fresh sowing operations as and when the weather conditions improve.

The RRBs, based on the decision of the state level bankers committee (SLBC) may evolve suitable package of relief measures with the approval of their board of directors and ensure timely availability of relief to the affected farmers. Similarly, StCBs, based on the decision of the SLBC, should examine the possibility of extending credit related relief to the members of co-operatives through the district central co-operative banks (DCCBs)/ primary agricultural credit societies (PACS).

Nabard has asked the RRBs and StCBs to grant medium term (conversion)/medium term (rephasement/reschedulement) loans to borrowers whose standing crops have been damaged.

It directed them to provide adequate investment credit for purchase of fodder in drought-affected areas and for deepening of wells, installation of tube/bore wells to tap additional ground water to compensate for deficient rainfall.

Nabard asked the two entities to grant reschedulement of instalments of investment credit, where necessary, to the affected borrowers.

While granting MT (C)/MT (R) loans and reschedulement of investment credit, conditions regarding 'annewari declaration' not less than 50 per cent, submission of 'annewari certificates' in the prescribed format and remission/suspension of land revenue/government dues, may be complied with, Nabard said in a directive to the RRBs and StCBs.

Nabard on its part would be willing to extend refinance support to banks for eligible agricultural operations, both production as well as investment credit, as per the prescribed norms including provision of MT (C)/MT (R) loans, where necessary.

RBI tells banks to assess situation

The Reserve Bank of India (RBI) has asked all scheduled commercial banks to assess the situation arising out of several parts of the country being affected by drought and floods resulting in damage to crop and property. It asked them to take immediate measures to provide appropriate relief to the affected persons. In this connection, RBI asked the banks to refer to the circulars issued by the Rural Planning and Credit Department (RPCD) in 1984 and 1998.