NBARD issues the Special Refinance Scheme for promoting Micro Food Processing Enterprises

Sep 24, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The National Bank for Agriculture and Rural Development (NABARD) on September 17, 2020 has published a circular on Special Refinance Scheme for promoting Micro Food Processing Enterprises (Scheme) and its operational guidelines, considering the issues like the inability of the entrepreneurs in food processing to access credit, lack of access to modern technology and inability to integrate with the food supply chain. 

The Scheme and guidelines provide the following:-

• The Scheme encourages banks to lend micro-food processing activities and create sustainable livelihood and employment opportunities for rural youth as well as reverse migrants due to the COVID-19 pandemic in rural areas.  

• Under the Scheme, NABARD had directed to extend concessional long-term refinance to all eligible banks/FIs at 4% to enable banks to accelerate capital formation in micro-food processing enterprises.

• For effective implementation of the scheme, monitoring will be done in the fora like SLBC/DCC/BLBC. Close monitoring shall be done by geo-tagging and geo-fencing of long-term economic activities financed by banks through NAB Parikshan Mobile App of NABARD.

[Circular No. 251/DOR-78/2020]


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