On October 1, 2020 National Bank for Agriculture and Rural Development (NABARD) launched a special refinance scheme to support the government’s Water, Sanitisation and Hygiene (WASH) programme. For this purpose, Rs 800 crore has been earmarked for the financial year 2020-21. This facility is an effort to promote a sustainable and healthy lifestyle in rural areas.
Points to be Noted
i.NABARD offers concessional refinance to all the eligible financial institutions, which includes Regional Rural Banks(RRBs), commercial banks and cooperative banks, with a repayment period of up to 36 months.
ii.The support will be transferred to fund the WASH activities that are a thrust area eligible for 95% refinance.
iii.NBFCs-MFIs ( Non-Banking Financial Companies-Microfinance Institutions) and other MFIs (Societies, Trusts, etc) can also avail the bank credit.
Note– The initiative will boost the ”Swachh Bharat Mission”. It will encourage rural youth, small and medium enterprises and SHGs (Self Help Groups) to undertake commercial activities in the sanitisation sector.
i.The financial institutions will be placed in a better position to improve the flow of credit to the sanitation sector in rural India where vulnerable communities have no access to WASH facilities.
ii.The funding will support the eligible activities like constructing, repairing the household toilets or converting an existing toilet to an accessible family toilet, domestic water motor pump etc.,
Recent Related News:
The National Bank for Agriculture and Rural Development (NABARD) has introduced, ‘Structured Finance and Partial Guarantee Program for Non-Banking Finance Companies (NBFC)-Micro Finance Institutions (MFIs)’, a dedicated debt and credit guarantee product to ensure uninterrupted flow of credit to the last mile in rural areas hit by the COVID-19 pandemic. NABARD has signed a pact with Vivriti Capital and Ujjivan Small Finance Bank on 14 August 2020 to introduce the initiative, which will enhance sustainable finance access to microenterprises and low- income households.
About National Bank for Agriculture and Rural Development(NABARD):
HeadQuarters– Mumbai, Maharashtra
Chairman– G.R. Chintala