Union Government extended Interest Subvention Scheme to banks

Union Government on 21 July 2015 extended Interest Subvention Scheme (ISS) to Public Sector Banks (PSBs), private sector commercial banks, rural regional banks (RRBs), cooperative banks and NABARD. It was extended to ensure availability of crop loans of up to 3 lakh rupees to farmers at 7 percent per annum.

The decision to continue interest subvention on short term crop loans was taken by the Union Cabinet chaired by Prime Minister Narendra Modi for the fiscal 2015-16. The Cabinet also approved an additional interest subvention of 3 percent per annum for those farmers who repay on time.

The government also decided to provide interest subvention to small and marginal farmers with Kisan Credit Cards (KCC) for loans against negotiable warehouse receipts post-harvest at annual interest of seven percent for six months.

The government will also give relief to farmers affected by natural calamities, where the interest subvention of two percent will continue to be available to banks for the first year on the restructured amount.

Besides, the Cabinet also approved a Central Agricultural University at Samastipur in Bihar. According to the approval, the existing agricultural university at Pusa will be converted into an international level institution through strengthening of infrastructure, manpower and other provisions.

The cabinet also gave its in-principle nod for the revival of Banana Research Centre at Goraul in Vaishali, Bihar.

Now get latest Current Affairs on mobile, Download # 1  Current Affairs App