On May 15, 2020 The National Bank for Agriculture and Rural Development(NABARD) has sanctioned Rs 1,500 crores for Punjab to ensure continuous credit flow to farmers, through state cooperative banks, amidst the COVID-19 pandemic. Out of the total amount Rs 1,000 crores is sanctioned to Punjab State Cooperative Bank and Rs 500 crores to Punjab Gramin Bank.
Major Highlights
i.The Amount given is part of NABARD’s Rs 25,000 crores nationwide special liquidity facility(SLF), which has been made available to state cooperative banks, regional rural banks, and microfinance institutions (MFIs), to ensure flow of credit to farmers for agricultural operations during COVID-19 pandemic
ii.Till now NABARD has disbursed Rs 1,000 crores to Punjab State Cooperative Bank and Rs 100 crores to Punjab Gramin Bank to support agricultural and other activities of farmers
iii.The support given by NABARD is a frontline liquidity support to these banks to ensure credit flow to farmers for carrying out agricultural operations for kharif crops smoothly during this difficult situation.
About NABARD:
Reserve Bank of India(RBI) at the insistence of the Government of India constituted a committee under the Chairmanship of B.Sivaraman to review the arrangements for institutional credit for agriculture and rural development(CRAFICARD) on 30 March 1979. On the committee’s recommendation, NABARD came into existence on 12 July 1982 with the approval of the Parliament by Act 61 of 1981 with an objective to promote sustainable, equitable agriculture and rural development.
Headquarters–Â Mumbai, Maharashtra
Chairman– Harsh Kumar Bhanwala.
