On May 5, 2020, The National Bank for Agriculture and Rural Development(NABARD) disburses Rs 12,767 crore to State Co-operative(Co-op) Banks & Regional Rural Banks(RRBs) across the country to increase their resources for extending credit to farmers during the lockdown due to the outbreak of COVID-19 pandemic.The loans are being offered for one year at an interest rate of 4.8 per cent.
- In total there are 33 State Co-ops & 45 RRBs in the country & are vital intermediaries in the rural credit structure.
Major Highlights
i.NABARD so far has extended the refinance(May 4 & 5) to the rural banks in 15 states which includes- Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Odisha, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal.
ii.Reserve Bank of India(RBI) has announced a Rs 50,000 crore refinance facility for 3 All-India Financial Institution(AIFI) namely- NABARD, the Small Industries Development Bank of India (SIDBI), and the National Housing Bank (NHB) on April 17.
iii.Of the Rs 50,000 crore refinance, NABARDÂ received Rs 25,000 crore for refinancing RRBs, co-operative banks and Micro Finance Institutions(MFIs).
iv.Since the second half of March 2020 when the lockdown came into force in different states as a measure to contain the spread of COVID-19 pandemic, NABARD has disbursed nearly Rs 30,021 crore to rural banks.
v.Still the development finance institution has not disbursed any amount from the RBI’s refinance window.
vi.AIFIs play a significant role in meeting the long-term funding requirements of agriculture and the rural sector, small industries, housing finance companies, Non-banking Finance Companies(NBFC), and MFIs.
About NABARD:
Headquarters– Mumbai, Maharashtra
Chairman– Harsh Kumar Bhanwala
