On December 5, 2020 Karnataka Vikas Grameena Bank (KVGB) launched ‘Kirishi OD(Overdraft) scheme’ for farmers. The OD facility is given to farmers based on the value of the land.
‘Kirishi OD’ scheme was launched by Neeraja Kumara Verma, Chief General Manager of NABARD, in Dharwad, Karnataka.
Need of the Scheme
To ease the difficulty faced by the farmers due to the uncontrolled weather, escalating natural disasters, and the ongoing COVID-19 pandemic.
About Kirishi OD Scheme:
Under the scheme, the farmers can get a maximum amount of Rs 1.5 lakh per acre for irrigated lands and Rs 1 lakh per acre for dry land.
Working capital requirements
This facility can be used for the Working Capital(WC) needs like to maintain the machinery and equipment, to repair and replace the machinery, for agricultural allied activities and to repay the private loans availed for personal use.
Note– The credit flow is essential for the growth of the agriculture sector and Regional Rural Banks (RRBs).
i.RRBs are Indian Scheduled Commercial Banks (Government Banks) that are operating at regional level in different States of India.
ii.RRBs were established under the provisions of an Ordinance passed in September 1975 and the RRB Act 1976 on the recommendations of the M. Narasimham Working Group.
iii.The 1st RRB in the country is Prathama Bank. It has its Head Office at Moradabad, Uttar Pradesh(UP). It is sponsored by Syndicate Bank(Syndicate Bank was amalgamated into Canara Bank w.e.f 1st April 2020).
Recent Related News:
Karnataka Vikas Grameena Bank (KVGB) launched Vikas Laghu Suvarna, a special gold loan scheme with a reduced interest rate of 7.25%. The bank has slashed the interest rate to provide easy and affordable credit at cheap cost to the customers in need, considering the pandemic situation in the country.
About Karnataka Vikas Grameena Bank (KVGB):
It was formed by amalgamating 4 RRBs namely, Malaprabha Grameena Bank, Bijapur Grameena Bank, Varada Grameena Bank and Netravathi Grameena Bank.
It is a scheduled bank owned by government of India
HeadOffice– Dharwad, Karnataka
Chairman– P Gopi Krishna
Formed– 12th September 2005
Sponsor Bank– Syndicate Bank(But Syndicate Bank was amalgamated into Canara Bank w.e.f 1st April 2020)