Interest Subvention Scheme for Kisan Credit Card to Fisheries and Animal Husbandry farmers during the years 2018-19 and 2019-20

Aug 28, 2019 | by Avantis RegTech Legal Research Team

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The Reserve Bank of India (RBI) on August 26, 2019, has issued the operational guidelines of the Interest Subvention Scheme for Kisan Credit Card (KCC) facility to fisheries and animal husbandry farmers for a period of two years that is 2018-19 and 2019-20. RBI has decided to extend the benefits of Interest Subvention at 2 percent and Prompt Repayment Incentive (PRI) at 3 percent to fisheries and animal husbandry farmers to meet their working capital needs under the KCC scheme.

The guidelines of the Interest Subvention Scheme for Kisan Credit Card facility to fisheries and animal husbandry farmers are:

1. RBI has been decided to provide interest subvention of 2% per annum to lending institutions viz. Public Sector Banks (PSBs) and Private Sector Commercial Banks (in respect of loans given by their rural and semi-urban branches only) on use of their own resources. This interest subvention of 2% will be calculated on the loan amount from the date of its disbursement or drawal upto the date of actual repayment of the loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier, subject to a maximum period of one year. In case of farmers possessing KCC for raising crops and involved in activities related to animal husbandry and/or fisheries, the KCC for animal husbandry or fisheries shall be within the overall limit of Rs. 3 lakh.

2. To provide an additional interest subvention of 3% per annum to such of those farmers repaying in time subject to a maximum period of one year from the date of disbursement. This also implies that the farmers repaying promptly as above would get short term loans at 4% per annum during the years 2018-19 and 2019-20. This benefit would accrue to only those farmers who repay their both short term crop loan and working capital loan for animal husbandry or fisheries activities in time.

3. Interest subvention is to be provided on a maximum limit of Rs. 2 lakh short term loan to farmers involved in animal husbandry and fisheries. The interest subvention and prompt repayment incentive benefit on short term loan (crop loan+ working capital loan for animal husbandry and fisheries) will be available only on an overall limit of Rs. 3 lakh per annum and subject to a maximum limit of Rs. 2 lakh per farmer involved in activities only related to animal husbandry and / or fisheries.

4. Banks are advised to make Aadhar linkage mandatory for availing short-term loans for Animal Husbandry and Fisheries in 2018-19 and 2019-20.

5. Banks are advised to capture and submit the category wise data of beneficiaries under the scheme and report the same on ISS portal individual farmer wise once it is launched by the Ministry of Agriculture and Farmers Welfare to settle the claims arising from 2018-19 onwards.

[Notification No. FIDD.CO.FSD.BC.No.10/05.02.001/2019-20]


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