News Update

Govt orders mandatory declaration of stock position of wheatCPI gets Rs 11 Cr tax notice for using old PAN numberGST - Penalty demand of Rs.3731 crores - A person who would fall within the purview of sub-section (1-A) of s.122 should necessarily be a taxable person who retains the benefits of transactions: HCGovt issues advisory against calls impersonating DoTFATP hand-wrings over slow regulation of crypto by member-countriesGST - Threatening and pressurising petitioner who is merely an employee - Highly unconscionable and disproportionate on the part of the officer: HCECI's C-Vigil app a big hit with votersGST - Same relief was claimed in earlier petition which was withdrawn unconditionally - Fresh petition seeking same relief is barred by the estoppel principle: HCIncome tax hands over Rs 1700 Cr tax demand to Congress PartyGST - Neither SCN nor the order spell out the reasons for retrospective cancellation of registration, hence cannot be sustained: HCStage-2 of Vikram-1 orbital rocket successfully test-firedGST - Non-application of mind - If reply was unsatisfactory, details could have been sought - Record does not reflect that such exercise was done - Matter remitted: HCHouthis claim UK has not capability to intercept their hypersonic missilesGST - Merely because a taxpayer has not filed returns for some period does not mean that registration is required to be cancelled with retrospective date also covering the period when returns were filed and taxpayer was compliant: HCIsraeli forces kill 200 Palestinians at Gaza medical complex & arrest over 1000GST - Petitioner's reply, although terse, is not taken into account while passing assessment orders - Petitioner put on terms, another opportunity provided: HCUnveil One Nation; One Debt Code; One Compliance Rule for Centre & StatesChina moves WTO against US tax subsidies for EVs & renewable energyMore on non-doms - The UK Spring Budget 2024 (See TII Edit)Training Program for Cambodian civil servants commences at MussoorieCBIC revises tariff value of edible oils, gold & silverCBIC directs all Customs offices to remain open on Saturday & SundayI-T- Once the citizen deposits the tax upon coming to know of his liability, it cannot be said that he has deliberately or willfully evaded the depositing of tax and interest in terms of Section 234A can be waived: HCHouthis attack continues in Red Sea; US military shoots down 4 dronesCus - No Cess is payable when Basic Customs Duty is found to be Nil: CESTAT
 
RRBs surpass lending target to Small & Marginal Farmers: MoS

By TIOL News Service

NEW DELHI, NOV 30, 2021: REGIONAL Rural Banks (RRBs) have been playing an important role in purveying agricultural credit, particularly to Small and Marginal Farmers and weaker sections of the society. This was stated by the Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in written reply to a question in Lok Sabha yesterday.

The Minister stated that in terms of the revised guidelines on Priority Sector Lending (PSL) issued by RBI, in respect of RRBs, a target of 18 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off- Balance Sheet Exposure (CEOBE), whichever is higher, is prescribed for lending to Agriculture, out of which a target of 9 per cent is for Small and Marginal Farmers (SMFs). PSL guidelines also prescribe a target of 15% of ANBC or CEOBE for lending to Weaker Sections, which, inter-alia, includes SMFs and SCs/STs, the Minister further stated.

Giving more details, the Minister said the RRBs have surpassed the prescribed target of lending to the SMFs & Weaker Sections during the years 2018-2019 to 2020-21 as can be seen in the table below:

(Amount in Rs. crore)

As on Loans Outstanding of RRBs
Total Loans Outstanding
Small & Marginal Farmers
Weaker Sections
Amount
Share (%)
Amount
Share (%)
31 Mar 2019 2,80,755 1,26,958 45.2 1,58,627 56.5
31 Mar 2020 2,98,214 1,43,103 48.0 1,78,659 59.9
31 Mar 2021 3,34,171 1,56,106 46.7 1,94,315 58.1

Source: NABARD

Listing out the measures taken by the Government and RBI to facilitate the ease of credit flow from RRBs to agriculture sector and SMFs including SC/ST farmers, the Minister stated:

The Master Directions on Priority Sector Lending (PSL) issued by RBI prescribe an enhanced target of 75% for RRBs for lending to the priority sector, as against the target of 40% applicable to Commercial Banks.

Target for SMF is to be raised from 8% to 10% between 2020-21 and 2023-24 in a phased manner.

Government of India implements an interest subvention scheme under which short term crop loans up to Rs.3.00 lakh are provided to farmers at a reduced interest rate of 7% p.a. The scheme provides interest subvention of 2% per annum to Banks on use of their own resources. Besides, additional 3% incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest to 4%.

The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of KCC to farmers. The scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers to meet their short term credit requirements for cultivation of crops, investment credit requirement for agriculture and allied activities and other needs.

To enhance coverage of small and marginal farmers in the formal credit system, RBI has decided to raise the limit for collateral-free agriculture loans from Rs.1 lakh to Rs.1.6 lakh.

A new scheme for KCC to Animal husbandry and Fisheries farmers has also been introduced through Banks, including RRBs, to meet their working capital requirement. The benefits of KCC along with interest subvention have been extended to Animal Husbandry and Fisheries farmers.

The requirement of 'no dues' certificate has also been dispensed with in respect of small loans up to Rs.50,000 availed by small and marginal farmers, share-croppers and the like and, instead, only a self-declaration from the borrower is required.

Small, marginal, tenant farmers, oral lessees, etc. are to be brought into the fold of institutional credit, Joint Liability Groups (JLGs) promoted by banks.

NABARD extends refinance at concessional rate of interest to RRBs for supplementing their resources for short-term and long-term lending. Refinance is expected to increase ground level credit and boost capital formation in agriculture.

During 2020-21, NABARD disbursed total refinance of Rs.44,975 crore to RRBs, which included Long Term refinance of Rs.15,157 crore and Short-Term refinance of Rs.29,818 crore.


POST YOUR COMMENTS
   

AR not Afar by SK Rahman

TIOL Tube Latest

Shri Shailendra Kumar, Trustee, TIOL Trust, giving welcome speech at TIOL Awards 2023




Shri M C Joshi, Former Chairman, CBDT




Address by Shri Buggana Rajendranath, Hon'ble Finance Minister of Andhra Pradesh at TIOL Awards 2023