Page 40 - Banking Finance September 2020

ARTICLE

Agricultural Production based on various measures initiated by RBI and various
schemes announced by Government of India through Alma
in India Nirbhar Bharat Abhiyan Scheme.
All figures in million tonnes
Source : Agriculture Ministry 5. Attila Nirbhar Bharat Abhiyan - Salient features
that are conducive for growth in institutional credit
116.48
Rice in rural areas, directly or indirectly.
117.94 Hon'ble Prime Minister, in his address to the nation on 13
May 2020, opined that every citizen should view COVID-19
103.60
Wheat crisis as an opportunity to achieve economic self-reliance.
107.98 He stressed on the importance of promoting "local"
products. He called it Almanirbhar Bharat Abhiyan' (or Self-
22.08 reliant India Mission) and said that in the days to come, the
Pulses
23.01 government will be unveiling the details of an economic
package towards this aim, which, after including the earlier
reliefs announced by Hon'ble Finance Minister of the Union
43.00
Coarse Cereals Government and the RBI, would be worth Rs 20 lakh crore
47.54 - or 10 per cent of GDP in FY2020. The brochures published
by GoI on this subject are appearing in this reading material
286.61 at the end. Following is a gist of activities that are likely to
Total foodgrains
295.67 boost the lending activities of Rural Co-operative Banks,
directly or indirectly.
43.00 X Limit of collateral free lending to be increased from Rs
Oil seeds 10 to Rs 20 lakhs for Women Self Help Groups supporting
47.54 6.85 crore households. [under Pradhan Mantri Garib
Kalyan Package (2)]
2018-19 2019-20 Rs 3 lakh crores Collateral-free Automatic Loans for

Businesses, including MSMEs. (100% credit guarantee
cover to Banks and NBFCs on principal and interest). (For
livestock in the world. Buffer stocks in cereals currently stand
at 91.6 million tonnes or 2.2 times the buffer norm. (Source: further details, the instructions issued by Gal or RBI may
Website of Agri. Ministry) please be viewed)
X New definition of MSMEs. (details are shown in the table
3. These positive trends in agricultural production do appended to this chapter.)
certainly stand as a silver lining in the current rural
X NABARD will extend additional refinance support of Rs.
environment. This trend is also much in favour of our DCCBs, 30,000 crore for crop loan requirements of Rural Co-op
whose mainstay is providing credit facilities to agricultural Banks & RRBs. This is over and above Rs 90,000 crore
and allied activities and whose prime clientele are the to be provided by NABARD through the normal
farmers, rural artisans, agricultural labourers and other refinance route during this year.
service providers to farming activities.
X Special drive to be undertaken to provide concessional
credit to PM-KISAN beneficiaries through Kisan Credit
4. In the backdrop of incidence of COVID-19 virus and
Cards. Fishermen and Animal Husbandry farmers will
resultant disrupted socio-economic activities as discussed in
also be included in this drive to enable such farmers to
the foregoing, an attempt is made in this chapter to
enumerate certain new avenues that are thrown up in rural gain access to institutional credit at concessional rate
of interest.
lending which would enable the banks to continue their
lending and other banking activities in a purposeful and X An 'Animal Husbandry Infrastructure Development Fund'
profitable manner. The suggestions made in this note are of Rs. 15,000 crore will be set up which aims to support

40 | 2020 | SEPTEMBER | BANKING FINANCE