 "Revised interest subsidy scheme for crop loans in FY16 on cards")
The Reserve Bank of India (RBI) on Thursday said the interest subvention scheme for short-term crop loans would be revised to improve efficiency. And, terms and conditions for the scheme in 2014-15 will be applicable to compute subsidy till June 30.
The government of India has advised that alternative approaches for improving the efficacy of the scheme are being examined, the finalisation of which may take some time, RBI said in a communication to banks.
Pending revision, the scheme in 2015-16 will run on the terms and conditions approved in 2014-15.
Interest subvention of two per cent (per annum) will be available to banks on their own funds used for short-term crop loans up to Rs 3 lakh per farmer, provided they give short-term credit to farmers at seven per cent per annum.
The government of India has advised that alternative approaches for improving the efficacy of the scheme are being examined, the finalisation of which may take some time, RBI said in a communication to banks.
Pending revision, the scheme in 2015-16 will run on the terms and conditions approved in 2014-15.
Interest subvention of two per cent (per annum) will be available to banks on their own funds used for short-term crop loans up to Rs 3 lakh per farmer, provided they give short-term credit to farmers at seven per cent per annum.
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