NABARD Supports Rural Economy by Rs 1.46 Lakh Crore in FY 2019-20
03 March 2020 04:28 PM
In a bid to augment ground level credit flow in agriculture and other economic activities in rural areas, NABARD has so far infused to the tune of Rs 1.46 lakh crore in the rural banking system in 2019-20 financial year.
NABARD has been extending financial support to the banks operating in rural areas to help them deploy their resources effectively for meeting the credit needs of rural people including farmers.
As on 28 February, Rs 87,069 crore has been extended to cooperative banks and regional rural banks in short-term refinance. In addition, long-term refinance of Rs 59,502 crore has also been provided to these banks as well as other financial institutions.
In FY’20 so far, NABARD has extended Rs 66,397 crore in short-term credit and Rs 6,704 crore long-term credit to rural cooperative banks. Similarly, regional rural banks have availed Rs 14,141 crore in short-term credit and Rs 8,417 crore in long-term credit. In addition, other banks including small finance banks have obtained long-term refinance of Rs 37,895 crore.
Notably, NABARD provides short-term refinance, which is essentially production credit, to banks to allow farmers’ meet their operational costs. Likewise, long-term refinance is aimed at supporting sectors like dairy, poultry, fishery, farm mechanisation, irrigation, non-farm sectors, etc.
Recognising the potential of NBFCs to reach out to a wide network of people in rural areas, NABARD is also directing its resources to increase institutional credit to rural sectors through these institutions. The development bank has so far extended Rs 4,638 crore to NBFCs and MFIs in FY’20.