The Centre has rejected a request from the Government of Rajasthan for release of interest subvention by NABARD to the Rajasthan State Cooperative Bank Ltd, informed Minister of State for Ministry of Agriculture & Farmers Welfare Parshottam Rupala to the House.
Alternatively, it has been suggested that a revolving fund for matching amount be created to enable Short Term Cooperative Credit Structure to avail timely interest subvention.
As per the current scheme provisions funds are provided by the Government to NABARD only on reimbursement basis of audited claims of concerned banks and there is no proposal under consideration to provide funds in advance, he underlined.
Minister also said that the Government has been implementing the Interest Subvention Scheme (ISS) since 2006-07 under which short term crop loans up to Rs. 3.00 lakh are made available to farmers at subvented interest rate of 7% per annum.
Presently, Govt loan @ 3% to the prompt payee farmers for repayment of their crop loans as per the repayment schedule fixed by the banks or within a period of one year from the date of disbursement, whichever is earlier, the Minister noted.