1. Works allocated to Agriculture Credit (AC) Section:

  • Credit Flow to Agriculture and Allied Sector
  • Mattersrelated to National Bank for Agriculture and Rural Development (NABARD) (except service matters)
  • Cooperative Banks
  • Externally Aided Projects related to Agriculture & Allied Sector

2. Flow of Agriculture Credit:

Rs. in Crore

Year Target Achievement
2003-04 -- 86,981
2004-05 1,05,000 1,25,309
2005-06 1,41,000 1,80,486
2006-07 1,75,000 2,29,400
2007-08 2,25,000 2,54,657
2008-09 2,80,000 3,01,908
2009-10 3,25,000 3,84,514
2010-11 3,75,000 4,68,291
2011-12 4,75,000 5,11,029
2012-13 5,75,000 6,07,376
2013-14 7,00,000 7,30,122.62
2014-15 8,00,000 8,45,328.23*
2015-16 8,50,000 ---        

(*) Provisional figure
(source: PSBs/NABARD/IBA)

3. Measures for Hassle Free Agriculture Credit

  • The Government of India, since 2006-07 has beenproviding an Interest Subvention to all Public Sector Banks, Regional Rural Banks and Cooperative Banks for short term crop loans uptoRs 3 lakh, so as to ensure that short term agriculture credit is available at the interest rate of7%per annum to farmers. In 2011-12, an additional 3% interest subvention was introduced for those farmers, who repaid their short term crop loans in time, which has continued ever since. Thus the short term crop credit is available to prompt payee farmers @ 4% p.a. for short term crop loans uptoRs 3 lakh.
  • RBI has advised banks to dispense with obtaining ‘No Due Certificate’ from the individual borrowers (including SHGs & JLGs) in rural and semi-urban areas for all types of loans including loans under Government Sponsored Schemes, irrespective of the amount involved unless the Government Sponsored Scheme itself provides for obtention of ‘No Dues Certificate’.
  • Banks (including RRBs), being advised that wherever there are difficulties in getting certification from the local administration/panchayati raj institutions regarding the cultivation of crops, etc., they may accept an affidavit submitted by landless labourers, share croppers and oral lessees giving the occupational status (i.e., details of land tiled/crop grown) for loans up to Rs 50,000.
  • RBI has advised banks to waive margin/security requirements for agricultural loans uptoRs 1,00,000
  • RBI has issued Standing Guidelines for Relief Measures to be provided by respective lending institutions in areas affected by natural calamities which, inter alia, include identification of beneficiaries, extending of fresh loans and restructuring of existing loans, relaxed security and margin norms, moratorium, etc. The moment calamity is declared by the concerned District Authorities, these Guidelines have been so designed that they are automatically set in motion without any intervention and this saves precious time.The common thread to extend relief measures is that the crop loss assessed should be 33% or more (modified in August 2015 in line with National Disaster Management Framework).