The National Bank for Agriculture and Rural Development (NABARD) on 9 June 2014 reduced the rate of interest by 20 basis points (bps) on long-term refinance facility to banks with an objective to promote farm sector investments. The decision was taken in response of growing demand by farmers and banks and the rates are applicable from 6 June 2014.
As per the notification the rates of refinance for five years and above will be 9.50 percent, whereas for three to five years period it will be 9.70 percent. For banks availing more than 500 crore rupees in a single drawl will further be incentivized by 10 bps.
Apart from this, further incentive of 50 bps would be available on financing for efficient agricultural technologies to combat food inflation. The list of efficient technologies includes 12 such innovative farm practices which will enhance fruit and vegetable production.
Chairman of NABARD: Harsh Kumar Bhanwala
If you have any Question/Point on the above information, please ask/discuss it in the Current Affairs Group.
When: 9 June 2014