NABARD releases Rs. 20,500 crore to co-operative banks and RRBs
The disbursed amount is part of the Rs. 25,000 crore which was a refinance facility provided by the Reserve Bank of India (RBI) to NABARD.
National Bank for Agriculture and Rural Development (NABARD) on May 18 had announced that it has released Rs. 20,500 crore to regional rural banks and co-operative banks for on-lending to the farmers.
The disbursed amount is part of the Rs. 25,000 crore which was a refinance facility provided by the Reserve Bank of India (RBI) to NABARD. It aimed at refinancing regional rural banks, microfinance institutions (MFIs) and co-operative banks.
NABARD had lent Rs. 5000 crore to RRB’s and co-operative banks, in the first quarter of the last fiscal year.
Objective of the provided fund:
The fund given by NABARD aims at a means of front-loading the resources of the co-operative banks and RRBs which will ensure the adequate liquidity with them to finance the farmers for taking up the Kharif and pre-monsoon 2020 operations.
Details of the amount released by NABRAD:
In an official release, NABARD had stated that they extended Rs. 20,500 crore with Rs. 15,200 crore to the co-operative banks and the balance of Rs. 5,300 crore to regional rural banks (RRBs) as a special liquidity facility for various states.
The Chief General Manager of NABARD, Jiji Mammen informed that out of Rs. 25,000 crore provided by RBI, NBARAD had allocated the amount of Rs. 23,000 crore to cooperative banks and RRB and Rs. 2000 crore for MFI’s.
He added that Rs. 20,500 crore has already been disbursed to cooperative banks and RRB’s and there has been a plan of disbursing the balance amount in the next two weeks. He also stated that out of Rs. 2000 crore, NABARD has already disbursed Rs. 1,500 crore to MFI’s.
Additional plans by RBI and NABARD:
The Regional Bank of India (RBI) had also announced to provide the special facility worth Rs. 10,000 crore to National Housing Banks (NHB) while Rs. 15,000 crore has been provided to the Small Industries Development Bank of India.
NABARD had also informed that the banks have initiated the programme of saturation of Kisan Credit Cards and about 12 lakh new Kisan credit cards have also been issued by the RRBs and Co-operative banks in the last two months. As of March 31, 2020, a total of 4.2 crore KCCs have been issued by RRBs and cooperative banks.