Right to Information

Department of Refinance

NABARD - National Bank For Agriculture And Rural Development

Information required to be published under Section 4 (1) (b) of the RTI Act

Sr. No

Particulars

Information

(ii)

The powers and duties of its officers and employees

The officers and employees of the department discharge duties dealing with Department of Refinance such as :

A) Long Term Refinance:

NABARD’s long-term refinance lays emphasis on investment credit which leads to capital formation through asset creation. Capital formation in agriculture is critical to increase agriculture production and productivity, protects farmers from uncertainty due to weather, climate change and provides them a sustainable income flow. Apart from that capital formation in allied activities enables farmers to have perennial flow of income, increasing their resilience to withstand any crisis.

B. Short Term refinance

NABARD provides short term credit to Rural Financial Institutions to tide over and make available timely finance to farmers during the cropping season. 

C. Implementation of Capital Subsidy Schemes of the Government of India:

NABARD has been playing an important role in channelling subsidy to eligible banks under various credit-linked subsidy schemes of Government of India, primarily for agriculture projects and priority sector activities. Implementation of these schemes has also enabled enhancement of ground level credit (GLC) to agriculture and allied sector and priority sector activities:

i. National Live Stock Mission Schemes - Entrepreneurship Development & Employment generation (NLM-EDEG) Components.

ii. New Agriculture Marketing Infrastructure sub scheme of Integrated Scheme for Agricultural Marketing (ISAM)

iii. Agri Clinics and Agri Business Centres (ACABC)

iv. National Project on Organic Farming (NPOF

D. Interest Subvention released by NABARD under various GoI schemes:

i. Crop loan, Animal Husbandry and Fisheries interest subvention scheme of GoI

ii. Interest subvention Scheme for extending Soft Loan to Sugar Mills

iii. Interest subvention Scheme for extending financial assistance to Sugar Mills for Enhancement and Augmentation of Ethanol Production Capacity

E. KCC Saturation Phase II:

As a part of the Prime Minister’s package for farmers, Hon’ble Finance Minister has announced to cover 2.5 crore farmers under the second phase of KCC saturation scheme to facilitate credit to the farm sector. Department of Animal Husbandry and Dairying and Department of Fisheries, GoI also decided to simultaneously launch a special drive to provide KCC to 1.5 crore dairy farmers belonging to milk unions and milk producing companies and 1 crore fish farmers.

 

(iii)

Procedure followed in the decision making process, including channels of supervision and accountability

Procedure- The policy guidelines for release of refinance are issued to client banks on an annual basis at the beginning of the year. The modalities for release of subsidy/Interest Subvention are governed by the procedure prescribed in the respective schemes formulated by Govt. of India. The operational guidelines in this regard are issued by NABARD from time to time. 

Related provisions, acts, rules – Regulation 11(2) of NABARD General Regulations, 1982


Accountability- Accountability as per NABARD’s policy is followed

(iv)

Norms set by it for the discharge of its functions

 Functions are discharged within the overall framework of rules and regulations of NABARD, guidelines received from GoI and RBI and norms/parameters prescribed in various policy circulars issued by the Department. The norms for various functions are outlined as follows:

1 Refinance- Long Term 

1.1 Eligible Institutions 

NABARD can give refinance assistance to Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, State Cooperative Agriculture and Rural Development Banks, District Central Cooperative Banks, Primary Urban Cooperative Banks, Small Finance Banks NBFCs/NBFC-MFIs etc. or any other financial institution, approved by Reserve Bank of India (RBI).

1.2 Eligible Purposes 

NABARD provides refinance for both Farm Sector and Non - Farm Sector activities.

1.3. Quantum of Refinance 

Quantum is subject to eligibility prescribed in our refinance policy from time to time

1.4 Rate of interest on refinance 

Rate of interest on refinance is reviewed from time to time taking into account the cost of funds, market conditions etc.

1.5 Repayment Period

Repayment period is 3 years to 5 years and above

2 Refinance- Medium Term 

2.1. Eligible Institutions-  All Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, State Cooperative Agriculture and Rural Development Banks, District Central Cooperative Banks, Primary Urban Cooperative Banks, Small Finance Banks NBFCs/NBFC-MFIs etc. or any other financial institution, approved by Reserve Bank of India (RBI). 

2.2 Eligible Purposes

All investment activities under medium term purposes related to agriculture and allied activities are eligible. 

2.3. Quantum of Refinance

Quantum is subject to eligibility prescribed in our refinance policy from time to time

2.4 Rate of interest on refinance 

Rate of interest on refinance is reviewed from time to time taking into account the cost of funds, market conditions etc. 

2.5 Repayment period 

Minimum repayment period is 18 months and maximum is 3 years 

3.Long Term Rural Credit Fund:

The Fund was announced by GoI in the Union Budget 2014-15 to motivate Cooperative Banks and RRBs to extend agriculture term loans to the farmers at concessional rate of interest. This fund has been constituted with an initial allocation of Rs.5000 crore. During 2022-23 an amount of Rs.15000 cr. has been allocated under this fund. NABARD is providing refinance facility to Cooperative Banks and RRBs out of this fund to enable them to provide agriculture term credit at concessional rate 

4.Refinance-Short Term-

4.1-Short Term(Seasonal Agricultural Operations)

In order to ensure availability of timely credit to farmers, production-oriented system of lending is followed by banks. The system has features like assessment of credit needs, provision of credit for purchase of inputs like fertilizers, pesticides etc. Crop-wise and district wise scales of finance are fixed and adherence to seasonality in lending and recovery is ensured. Refinance is provided for the production purpose at concessional rates of interest to RRBs and to StCBs on behalf of District Central Cooperative Banks (DCCBs) by way of sanction of annual credit limits. Each drawal against the sanctioned credit limit is repayable within 12 months. 

This refinance is provided from Short Term Cooperative Rural Credit Fund(STCRC) and Short Term RRB Refinance Fund (STRRB) allocated by GoI/RBI out of shortfall in priority sector lending of Scheduled Commercial Banks 

4.2 Short Term Credit Refinance Fund: STCRC and STRRB

The fund is intended to augment resources of NABARD for extending short term (SAO) refinance to cooperatives and RRBs. The corpus of the fund is contributed by scheduled commercial banks having shortfall in achievement of priority sector target and sub-targets as decided by Reserve Bank from time to time. Accordingly banks contribute to the corpus announced in each year's budget. NABARD supplements this fund with open market borrowing for extending ST(SAO) refinance to cooperatives and RRBs. During the year 2022-23 an amount of Rs.50002.23 crore has been allocated under STCRC fund and Rs.15000.49 crore under ST(RRB)

4.3 Additional ST(SAO)

In view of banks facing liquidity constraints due to reasons like drought conditions and increased demand, withdrawal of deposits by CCBs etc. NABARD has started a new line of credit during 2016-17 to provide Additional Short-Term refinance for (SAO) to StCBs and RRBs over and above normal ST (SAO) limit.

4.4 ST(Others) and Weavers

The ST ( Others ) and Weavers limit is sanctioned to banks for providing short term credit for purposes other than those covered under ST(SAO) viz. Agriculture and Allied Activities, Marketing of crops, Fisheries Sector etc and for meeting Working Capital requirement of Primary /Apex/Regional Weavers Coop Society , State Handloom Development Corporation etc.

5. Refinance-Medium Term Conversion

Refinance facility is available to StCBs and RRBs against the loans converted/ rescheduled / rephased of farmers affected by natural calamities under Medium term stabilization arrangement. The conversion facility in case of StCBs is shared by NABARD (60%), State Government(15%) and StCB (25%) and in the case of RRBs the sharing ratio is NABARD (70%), Sponsor Bank (25%) and RRBs(5%).

6 Long Term loan to State Govt.

Long Term Loans are provided by NABARD to State Government for contribution of share capital to cooperative credit institutions (StCBs /DCCBs/ SCARDBs /PCARDBs / PACS /FSS /LAMPS) for periods upto 12 years in order to strengthen the share capital base of these institutions and thereby increase their maximum borrowing power and enable them to undertake larger lending programmes; subject to certain conditions.

7. Interest Subvention under GoI Scheme for Financing of crop loan at 7% p.a. – 

The GoI had launched Interest Subvention scheme in the year 2006-07. As per the extant guidelines of GoI for the FY 2022-23 to 2023-24: Interest Subvention of 1.5% per annum is provided to Public Sector Banks ,Private Sector Banks (in respect of loans given by their rural and semi urban branches), Cooperative Banks and Regional Rural Banks on their own funds used for short term crop loans upto Rs.3,00,000/- per farmer provided the lending institutions make available short-term credit at the ground level at 7% per annum to farmers. 

In addition to above, a scheme was introduced from 2009-10 for providing additional interest subvention to the prompt paying farmers wherein presently 3% Interest Subvention as an incentive to prompt payee farmers is given. This subvention is available to farmers on the short term production credit upto maximum amount of Rs.3.00 lakh availed during the year. Thus the prompt paying farmers are getting short term crop loans @4% per annum from various banks. 

In order to discourage distress sale by farmers and to encourage them instead to store their produce in warehouses, the benefit of interest subvention will be available to small and marginal farmers having Kisan Credit Card for a further period of upto six months after the harvesting of the crop at the same rate as available to crop loan against Negotiable Warehouse Receipts issued for the produce stored in warehouses accredited with Warehousing Development Regulatory Authority

To provide relief to farmers affected by natural calamities, an interest subvention of 2 per cent per annum will be made available to banks for the first year on the restructured loan amount. Such restructured loans will attract normal rate of interest from the second year onwards as per the policy laid down by the RBI. Ministry of Agriculture and Farmers Welfare, Govt. of India vide their F. No.1-4/2020 – credit-I dated 25th August 2022 has modified the Interest Subvention to banks. For FY 2022-23 to 2023-24: IS of 1.5% will be payable to Cooperative Bank, RRBs, SFBs, Commercial Banks on their own funds used for Short Term loans for agriculture and allied activities including animal husbandry, dairy, fisheries, bee keeping etc., provided the banks lend at 7%.

8.Interest Subvention on working capital to Animal Husbandry and Fisheries

The GoI has earlier extended the Interest subvention Scheme on KCC issued to crop loan farmers to the KCC issued to Animal Husbandry and Fisheries farmers from 2018-19. Interest subvention of 2% to banks and 3% to farmers towards Prompt Repayment (for the FY 2022-23 & 2023-24 Interest subvention of 1.5%) incentive is extended on short-term loans up to Rs2 lakh to animal husbandry and fisheries farmers apart from the existing KCC for crop loans, provided the loans are extended by banks @7% per annum. In case of farmers possessing KCC for raising crops and involved in activities related to Animal Husbandry and/ or Fisheries, the Interest Subvention on short-term loan is available on an overall limit of Rs.3 lakh per annum.

8 Kisan Credit Card-

The Kisan Credit Card (KCC) scheme was introduced in 1998-99, as an innovative credit delivery mechanism that aims at adequate and timely credit support from the banking system to the farmers for their cultivation needs including the purchase of inputs in a flexible, convenient, and cost effective manner. Banks have been advised to issue Kisan Credit Cards (KCC) to all eligible farmers. The KCC Scheme has since been simplified with facilities like one-time documentation, built-in cost escalation in the limit and facility of ATM enabled debit card etc. Under the present guidelines of KCC, the limit is sanctioned for 05 years and the beneficiaries have ease and flexibility in drawal and repayment

As announced in PM Atmanirbhar Bharat package, over 1.15 crore farmers have been covered under the ongoing KCC saturation drive with sanctioned credit limit of about Rs.1.61lakh crore by Cooperative Banks and RRBs. While ensuring convenient and cost-effective credit delivery to farmers, the ongoing campaign will be instrumental in driving the rural economy and further accelerating agricultural production and allied activities, besides enhancing the income level of farmers.

9. Scheme for Extending Financial Assistance to Sugar Mills for Enhancement and Augmentation of Ethanol Production Capacity 

As per the guidelines of the scheme, DFPD accords in principle approval to sugar mills for implementation of projects under the scheme. Sugar mills have to approach banks for sanction of bank loans for implementation of the projects. NABARD has been appointed as a Nodal Agency for interacting with DFPD, Govt. of India and managing interest subvention under the Scheme.

Assistance under the Scheme:  Interest Subvention @ 6% per annum or 50% of the rate of interest, whichever is lower, on the loans to be extended by bank shall be borne by the Government of India for five years only, including one year moratorium period.

Eligible Institutions: All Public Sector Banks, Private Commercial Banks, Scheduled Urban Cooperative Banks, Cooperative Banks, Regional Rural Banks, National Cooperative Development Corporation (NCDC), IREDA and any other financial institutions which are eligible for re-finance from NABARD are eligible to claim interest subvention under the Scheme on behalf of eligible sugar mills.

11.Capital Investment Subsidy Schemes-

NABARD is the pass through agency for channelizing subsidy for various Government Sponsored Schemes implemented by GoI furnished as under:

(i)Agri Clinics and Agri Business Centres

(ii) Agriculture Marketing Infrastructure Scheme

(iii)National project on Organic Farming

The norms for execution of subsidy programmes is given in point no. (xii)

(v)

Rules, regulations, instructions, manuals and records, held by it or under its control or used by its employees for discharging its functions.

The following manuals containing broad policy , procedures/rules documentation etc have been prepared for reference:

(i)Short Term Manual

(ii)Long Term Manual

(iii)Handbooks on Government Sponsored Schemes

(iv)Internal and external circulars are made available to staff members on the Bank's intranet and external circulars on Bank's website (www.nabard.org)

Modifications in the guidelines/operational instructions are made from time to time through issuance of circulars which are also uploaded on the website 

(vi)

A statement of the categories of documents that are held by it or under its control

The following documentation are done for release of refinance-

 Release of LT Refinance 

A. General Refinance Agreement, Board Resolution- Executed by borrowing institutions and mandate for debiting their RBI/ Principal Banker’s account in case of default for all agencies.

B. In case of StCBs not satisfying the prescribed norms and SCARDBs State Govt. Guarantee. 

C. In the event of Govt. guarantee (wherever required) not forthcoming, alternative security like pledge of Govt. Securities or pledge of Fixed Deposit Receipts issued by scheduled banks or good working StCBs could be considered subject

D. Agreement for assignment / Hypothecation of book debts, delivery letter and DP Note and acknowledgement of debts/securities in case of NBFCs/NBFC-MFIs,

Release of ST Refinance 

A. Loan Agreement, Mandate, DP note , NODC statements-by StCB/RRB 

B. In case of StCBs not satisfying the prescribed norms State Govt. Guarantee. 

C. In the event of Govt. guarantee (wherever required) not forthcoming, alternative security like pledge of Govt. Securities or pledge of Fixed Deposit Receipts issued by scheduled banks or good working StCBs could be considered subject

 

(vii)

Particulars of any arrangement that exists for consultation with or representation by the members of the public in relation to the formulation of its policy or implementation thereof

Feedback from banks, farmers, rural entrepreneurs, members of public are obtained through our district offices, meetings, workshops, studies, training programmes etc. which are taken into account in the annual review of policies/programmes as well as while framing fresh annual policies and programmes of the department..

(viii)

A statement of the boards, councils, committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advice, and as to whether meetings of those boards, councils, committees and other bodies are open to the public, or the minutes of such meetings are accessible for public

The policy/modalities for refinance in DoR are effected after taking approval from Board or various committees of the Board of NABARD. The meetings of the board/such committees and minutes thereof are not open to public.

(ix)

A directory of its officers and employees

 Click Here

(x)

The monthly remuneration received by each of its officers and employees, including the system of compensation as provided in its regulations

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(xi)

Budget allocated to each of its agency, indicating the particulars of all plans, proposed expenditures and reports on disbursements made

Budget Allocated and Disbursements made:

Long Term Refinance – Position as on 31.03.2022

? in crore

Agency

Target for 2021-22

Achievement as on 31.03.2022

Commercial Banks including SFBs

76000

76736.27

RRBs

16000

14389.38

StCBs

11500

11453.71

SCARDBs

3000

2541.32

NBFCs/PUCB/ ABF(AP)/ NABKISAN/ NABFINS

12000

9320.00

NABARD Subsidiaries

1500

1399.87

Loans to State Govt.

 

295.00

Total

120000

116135.55

Short Term Refinance – Position as on 31.03.2022

? in crore

Agency

Target for 2021-22

Achievement

 as on 31.03.2022

ST-SAO

StCB

45568.57

45568.57

RRB

10126.30

10126.30

Total

55694.87

55694.87

Additional ST(SAO)

47000.00

67817.89

ST(Others) and Weavers

18000.00

28590.41

SFB

32.79

32.79

Total

120727.66

152135.96

Government Sponsored Schemes

? in crore

S.No

Name of the Scheme

Cumulative Subsidy Disbursed as on 31.03.2022

1

Dairy Entrepreneurship Development Scheme

1892.29

2

Poultry Venture Capital Fund (Subsidy) scheme

494.38

3

Integrated Development of Small Ruminants and Rabbits

349.30

4

Pig Development

125.10

5

Salvaging and Rearing of Male Buffalo Calves

2.42

6

Agri Clinics and Agri Business Centers

121.30

7

National Project on Organic Farming

28.84

(xii)

Manner of execution of subsidy programmes, including the amounts allocated and the details of beneficiaries of such programmes

The ongoing capital subsidy schemes channelized by NABARD are listed at (iv) pt No 9.

1. Agri Credit and Agri Business Centre (ACABC)-

Objective-Supplementing the efforts of public extension by facilitating qualified agriculture professionals to set up agri-ventures that can deliver value-added extension, advisory services, etc to farmers at their door steps.

Availability of Subsidy - Composite subsidy of 44% of the project cost for women, SC/ST and all categories of candidates from NER and Hilly States and 36% of project cost for all other beneficiaries is provided under the scheme.

Procedure- The Regional Offices of NABARD scrutinize the proposals of subsidy claims received from banks and sanction the subsidy. The consolidated subsidy claims are sent to Dept. of Refinance, NABARD, Head Office by the ROs which places an indent for funds to GoI based on the claims from ROs. Based on availability of funds from GoI, the claims received from Regional Offices are confirmed for release to the respective banks.

2. Agriculture Marketing Infrastructure Scheme (AMI)-

Objective – To develop marketing infrastructure to effectively handle and manage marketable Surpluses of agricultural and allied produce, promote innovative and latest technologies in post-harvest and agricultural, promote creation of scientific storage capacity for storing farm produce, processed farm produce and agricultural inputs etc.

Availability of Subsidy –

FOR STORAGE INFRASTRUCTURE PROJECTS: Capital cost of the project for the purpose of subsidy will be calculated on the project cost as appraised by financial institution or actual cost of eligible components as certified by a Chartered Accountant, whichever is lower subject to the subsidy ceiling per MT as well as overall ceiling given below:

Category Rate Of Subsidy (on capital cost) Subsidy celling
50-1000 MT in Rs./MT More than 1000 Mt and up to 10,000 (in RS./MT) Maximum ceiling (Rs. Lakhs)
A) North Eastern States, Sikkim UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* areas 33.33% 1333.20 1333.20 133.20
B) In other Areas
1. For Registered FPOs, Panchayats. Women, Scheduled Caste (SC) / Scheduled Tribe (ST) entrepreneurs or their corporatives**/ Self-help groups 33.33% 1166.55 1000.00 100.00
2. For All Other Categories of Beneficiaries 25% 875/- 750/- 75.00

* Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.

** SC/ ST Cooperatives to be certified by the concerned officer of the State Government.

FOR NON-STORAGE PROJECTS : Capital cost of the project for the purpose of subsidy will be calculated on the Project cost as appraised by financial institution or actual cost of eligible components as certified by a Chartered Accountant, whichever is lower.

Category

Rate of Subsidy (on capital cost)

Maximum Subsidy Ceiling # (Rs. in lakhs)

A) North Eastern States, Sikkim, States of Uttarakhand. Himachal Pradesh, Jammu & Kashmir, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* and tribal areas

33.33%

30.00 Lakhs

B) In Other Areas
1. For Registered FPOs, Panchayati Raj Institutions, Women farmers/ entrepreneurs, Scheduled Caste (SC)/ Scheduled Tribe (ST) entrepreneurs and their cooperatives** 33.33% 30.00 Lakhs
2. For all Other Categories of Bneficiaries 25% 25.00 Lakhs

* Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.

** SC/ ST Cooperatives to be certified by the concerned officer of the State Government

# For the projects of pulse splitting and oil crushing, the maximum subsidy for 25% category is Rs.12.50 lakh and 33.33% category is Rs.16.66 lakh only.

Procedure – For advance subsidy, the banks file the subsidy claims in the ENSURE portal & submit the necessary documents in hard copy to NABARD ROs who scrutinize the claims & push it to NABARD HO. Based on the availability of funds, the claims are confirmed & subsidy is disbursed. The above procedure is repeated for final subsidy after conducting Joint Monitoring Inspection.

3. National Project on Organic Farming (NPOF)-

Objective - To promote commercial production of organic inputs like bio-fertilizers, vermi-culture hatchery, fruit and vegetable waste compost units.

Availability of Subsidy - Capital subsidy of 25% with ceiling of Rs.40 lakh (Bio fertilizer-bio pesticide unit); 33% (fruit and vegetable market waste compost unit) with ceiling of Rs.60 lakh is provided under the scheme. 

Procedure- Same as ACABC claims

Target - These schemes are demand driven.

The confirmation for continuation of the scheme has not been received from GoI from the financial year 2021-22.

Language in which information manual/hand book available

(i) Short Term and Long Term Manuals are in English

(ii) All circulars and handbooks on GSS are bilingual

When was the manual/ handbook last updated 

Short Term and Long Term Manuals were last updated in 2017-18

Information available in electronic form

All circulars as well as relevant information is available in soft form on NABARD’s website

(xiii)

Particulars of facilities available to citizens for availing information organisation

Grievance Redressal Mechanism exists in NABARD. The information may be sought under RTI Act by individual / agencies.

(xiv)

Such other information as may be prescribed under the section 

All the grievances pertaining to short term and long term refinance, interest subvention and subsidies under ongoing GSS schemes received through grievance redressal portal, webmaster and e-mails are replied. 

The information under VIP references and RTI is given.