Thursday, August 4, 2016

Interest Subvention Scheme

i)  A subvention of 2 % per annum will be given to Public Sector Banks  and the rural and semi–urban branches of Private Sector Scheduled Commercial Banks, for short term crop loan upto Rs.3,00,000/- per farmer, provided at an interest rate of 7% per annum. The subvention will be calculated from the date of disbursement to the date of repayment or the due date of the loans, whichever is earlier, subject to a maximum period of one year.

ii)  An additional subvention of 3 % per annum will be available to the prompt payee farmers.

iii) Interest subvention will be available to small and marginal farmers having KCC for another six months post-harvest on the same rate against negotiable warehouse receipt.

iv) To provide relief to farmers affected by natural calamities, the interest subvention of 2% will continue to be available for the first year on the restructured amount.

It is also advised as under:

i)   Claims of interest subvention may be submitted to the Reserve Bank of India.

ii) In respect of 2 % interest subvention, banks are required to submit their claims on a half-yearly basis. The claim of 31st March should be accompanied by a Statutory Auditor's certificate certifying the claims as true and correct. Any remaining claim not included in the claim for March 31st, may be consolidated and marked as an 'Additional Claim' duly audited by the Statutory Auditors.

iii) In respect of the 3% additional subvention, banks may submit their one-time consolidated claims pertaining to the disbursements made during the entire year latest by April 30, duly audited by the Statutory Auditors.
Based on RBI circular dated 4/08/2016. For any further details please refer ……………Poppy