The Reserve Bank of India ( RBI ) has allowed banks to claim interest subvention on loans given to farmers through Kisan Credit Card ( KCC ) under the Short Term Crop Loan Scheme during the last financial year. The rules have been changed for.
The pending claims for the financial year 2021-22 can be presented up to June 30, 2023 and must be certified as true or correct by the statutory auditors, RBI said in a notification. The government gives an interest subvention of 2% to banks on an annual basis for providing short-term crop loans up to Rs 3 lakh to farmers at 7 percent interest by banks.
Apart from this, an additional interest subvention of 3% is given to the farmers who pay the loan on time. The effective interest rate for such farmers sits at 4 per cent.
Banks will have to take certificate from the auditor
The Reserve Bank of India (RBI) has said in a circular that as per the Revised Interest Subvention Scheme for short-term loans given for agriculture and allied activities through Kisan Credit Card (KCC) during 2021-22, banks will have to submit their statutory auditors. They have to submit their claims on annual basis, duly certified by
The circular states that any remaining claim relating to disbursement made during the year 2021-22 may be consolidated separately and marked as ‘Additional Claim’. and can be certified latest by June 30, 2023.
Let us tell you that the Kisan Credit Card scheme was started in 1998. Under this, a loan of up to three lakh rupees is available. The farmer can use it to buy agricultural inputs like seeds, fertilizers, pesticides.
The central government has abolished service tax, processing fee, inspection and ledger folio charges on agricultural loans. Farmers now get savings of up to Rs 5,000 on crop loans up to Rs 3 lakh at the time of applying.
RBI extends CCL till May for wheat procurement in Punjab
Apart from this, the Reserve Bank of India has increased the Cash Credit Limit for the existing wheat purchase in Punjab. The Punjab government said that the Reserve Bank has extended the CCL of Rs 3,378.15 crore till the end of May.
With this, the sanctioned limit of Rs 24,773.11 crore till the end of April has increased to Rs 28,151.26 crore till the end of May. Wheat procurement from Punjab for the central pool has started in April.
