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INFORMATION CENTRE

RTI – Section 4(1)(b)

Department of Refinance
Information required to be published under Section 4 (1) (b) of the RTI Act
 
Sanction of refinance to SCARDBs in ‘medium’ and ‘high risk’ categories
Sr.No. Particulars Information
(i) Particulars of its organisation, functions and duties Department of Refinance (DOR)
NABARD Head Office, Mumbai
Tel-022 26524926
Fax- 022 26530090
 
Functions
 
(i)Provides refinance support to banks against their short term, medium term and long term loans
(ii)Acts as a nodal agency for channelizing subsidy under various Government Sponsored Schemes
(iii)Monitors implementation of Interest Subvention scheme in respect of RRBs and Cooperatives.
(iv)Monitors Kisan Credit Card scheme in respect of RRBs and Cooperatives
(v)Associated with implementation of centrally sponsored scheme on Revival, Reform and Restructuring Package for Handloom sector
(vi)Acts as nodal agency for channelizing the margin money and interest subsidy under the Comprehensive Package for the Handloom sector
(vii)Acts as coordinating agency forGoI sugar package
 
(ii) The powers and duties of its officers and employees A. Delegation of Power- The power for sanction and release of refinance under various lines of assistance by NABARD have been delegated to officers in various grades as indicated below. These powers are exercised by the respective officers based on recommendations of Sanctioning Committees

SHORT TERM
A. Cooperatives
Purpose In charge of RO(CGM/GM) CGM, DoR HO ED
ST (SAO) Unrestricted - -
ST(SAO)- against pledge of securities Unrestricted - -
ST (Weavers)- Procurement and Marketing Activities of Apex/Regional Weavers Cooperative Societies - 50 100
ST(Weavers)- Trading in yarn by Apex/ Regional WCS - - 25
ROs headed by Officers in Grade 'D' will have powers in sanctioning ST(SAO) credit limits to Cooperative Banks upto `5.00 crore. In respect of ROs headed by officers in Grade ‘D’, CGM DOR HO is vested with unrestricted powers in sanctioning credit limits to StCBs with regard to ST(SAO), ST(OSAO) and ST(Weavers)- Production and Marketing Activities of PWCS

ST(Others)
(i)ST Credit limit for marketing of crops Unrestricted powers to the in-charges of RO (CGM/GM) to sanction credit limit under ST(Others)

(ii)ST limit for financing approved short term agricultural/allied activities

(iii)ST limit for finnacing pisciculture activities

(iv)ST credit limit for financing production and marketing activities of Primary Industrial Cooperative Societies, Labour Contract and Forest Labour Cooperative Societies

(v)ST credit limits for financing Apex/Regional Industrial Cooperative Societies (other than weavers)

(vi)ST credit limit for financing individual Rural Artisans through PACS

(vii)ST limit for financing procurement,stocking and distribution of chemical fertilisers

MT(Conversion) loans out of NRC (Stabilisation) fund including MT (Reschedulement/ Rephasement) loans Unrestricted (if RO headed by CGM) If RO headed by other than CGM -
LT loans to State Government u/s 27 of NABARD Act, 1981 for contribution to Share Capital of cooperative credit institutions - - Unrestricted
B.Regional Rural Banks      
Aggregate ST(SAO)ST (OSAO) credit limits Unrestricted - -
ST(Others)


Marketing of Crops Unrestricted - -
Refinance for financing pisciculture activities Unrestricted - -
MT(Conversion) loans out of NRC (Stabilisation) fund including MT(Reschedulement/ Rephasement) loans Unrestricted if RO headed by CGM) If Ro headed by other than CGM
ROs headed by officers in Grade 'D' will have powers for sanctioning aggregate ST (SAO) credit limits to RRBs upto `5.00 crore. In respect of ROs headed by officers in Grade ‘D’, CGM DOR HO is vested with unrestricted powers in sanctioning credit limits to RRBs with regard to ST(SAO) and ST(OSAO)



Long Term

1.Sanction of schemes at RO level
Particulars/ Purpose Refinance Commitment (` lakh)
  CGM GM (OIC) GM DGM (OIC) DGM AGM
(i)ARF Unrestricted Unrestricted Unrestricted Unrestricted 100 40
(i)All other schemes irrespective of purpose 1500 300 300 200 100 -
2.Rephasement of Schemes
Particulars CGM/GM /DGM/OIC DGM AGM
Rephasement of schemes where refinance commitments or parameters are not revised Without restriction on number of times and years Maximum three years extension of original phasing Maximum 2 years extension of original phasing
Rephasement of schemes where financial outlay is revised or involves other changes in conditions of sanction By sanctioning authority within the delegated powers for sanction of schemes
 
3. Release of refinance
 
Particulars Refinance (` lakh)
  CGM GM (OIC) GM DGM (OIC) DGM AGM
(i)Drawals under ARF Unrestricted Unrestricted Unrestricted Unrestricted 100 40
(ii)Drawals under sanctioned schemes Unrestricted Unrestricted 300 Unrestricted 100 -

Sanction of refinance to SCARDBs in ‘medium’ and ‘high risk’ categories
 
Sr. No. Refinance amount (₹ crore) Authorized Officer
1 Up to ₹ 200 crore CGM, DoR, HO, Mumbai
2 Above ₹ 200 crore and up to ₹ 500 crore DMD
3 Above ₹ 500 crore Chairman

Government Sponsored Schemes- CGM/OIC of Regional Office can sanction and release capital subsidy/ interest subsidy/ grant/ revolving fund assistance/ other assistance of any nature out of funds placed with NABARD by Govt. of India/State Government or any other agency under the schemes that are being/will be implemented by NABARD.

B.Duties- The officers and employees perform the duties assigned to them to carry out all the functions of the department as outlined in para at serial no. (i) above.
(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 inrespective schemes formulated by Govt. of India. The operational guidelines in this regard are issued by HO from time to time.
Supervision-  The prescribed guidelines are strictly followed by the functionaries. In order to further strengthen the system and procedure,the work done at a lower level is monitored/supervised by an authority at the higher level as per the chart given below:
                                                           Chief General Manager 
                                                                            I
                                                              General Manager (3)
                                                                            I  
Policy (ST& LT), KCC Monitoring (ST& LT), Sugar , Interest Subvention Government Sponsored Schemes, Administration Cofinance, Coordination
1 DGM 2 DGM 1 DGM 2 DGM
1 AGM 2 AGM 2 AGM
1 Mgr 3 Mgr. 1 Mgr. 1 Mgr
1 AM 3 AM 4 AM 1 AM
2 SDA 2 SDA 4 SDA 2 SDA

Accountability- Accountability is fixed on officials according to the duties and authorities assigned to them. .
(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. 1.5Repayment Period
Repayment period is 3 years to 5 years and above
 
2 Refinance- Medium Term 

2.1. Eligible Institutions-  AllScheduled 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 2017-18 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 CentralCooperative 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 providedfrom 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 2017-18 an amount of Rs.45000 crore has been allocated under STCRC fund and Rs.10000 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, during the year 2016-17 out of market borrowings by NABARD

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 thosecovered 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 Subventionscheme in the year 2006-07. As per the extant guidelines of GoI for the year 2017-18 Interest Subvention of 2% 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.

8 Kisan Credit Card-
Kisan Credit Card Scheme has been launched in the country to facilitate flow of adequate credit to farmers in a hassle-free and timely manner. Some of theprovisions of the scheme are as under:
 
  • Wider delivery channels : Operations through Branch/Cheque facility/BCs/ATM (debit card)/POS/Mobile handsets
  • More clarity in assessing credit needs (inclusion of post harvest / household/consumption needs up to 10% + maintenance expenses up to 20%)
  • Cost escalation built in for assessing the limit – Notional hike of 10% for fixing credit limit from second year onwards
  • Moreactivities covered under Term Loan
  • Emphasis on financingJoint Liability Groups
  • One time documentation at first availment and thereaftersimple declaration from second year
  • Moving towards accessing online land record and creation of charge.
9. Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU-2014)
 
Under the scheme for extending financial assistance to sugar undertakings (SEFASU-2014), financing banks provide loans to sugar mills to clear cane price arrears of previous sugar seasons and settle cane price of current sugar season in a timely manner, as per fair and remunerative price (FRP) periodically fixed by the central government. State Bank of India (SBI) was appointed the nodal bank to manage the subsidy for onward reimbursement to respective banks. On behalf of cooperative banks and RRBs NABARD coordinates the claims with SBI for reimbursement

10. Revival, Reform and Restructuring Package for Handloom Sector
 
The revival, reform and restructuring (RRR) package for handloom sector is being implemented since 2011-12. Twenty-seven states have signed tripartite MoUs for the centrally- sponsored plan scheme with GoI and NABARD. Under RRR, 39 Apex Weaver’s Cooperative Societies (AWCS), 9642 Primary Weavers Cooperative Societies (PWCS), 6310 SHGs and 54226 individual weavers have been assisted since the beginning. To settle claims under the package an amount of ` 741.03 crore was released by GoI in four tranches

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)Dairy Entrepreneurship Development Scheme
(ii)National Livestock Mission
(iii)Agri Clinics and Agri Business Centres
(iv)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-
 
A. General Refinance Agreement, Board Resolution- Executed by borrowing institutions for long term refinance support
B. Government Guarantee or Pledge of FDs-by StCB and SCARDB for long term refinance support/ interim finance assistance
C. Loan Agreement, Mandate, DP note , NODC statements-by StCB/RRB for short term refinance support
(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-
 
A. General Refinance Agreement, Board Resolution- Executed by borrowing institutions for long term refinance support
B. Government Guarantee or Pledge of FDs-by StCB and SCARDB for long term refinance support/ interim finance assistance
C. Loan Agreement, Mandate, DP note , NODC statements-by StCB/RRB for short term refinance support
 
(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 for framing various 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 These particulars may be accessed from information furnished by HRMD
(x) The monthly remuneration received by each of its officers and employees, including the system of compensation as provided in its regulations Click Here
(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 31.12.2017
                                                                                                                               'crore
Agency Target for 2017-18 Achievement as on 31.12.2017
Commercial Banks 26000.00 32575.00
RRBs 13000.00 9304.10
StCBs 7000.00 5391.27
SCARDBs 4000.00 1589.57
NBFCs/PUCB/ ABF(AP)/ NABKISAN/ NABFINS 5000.00 2858.97
Total 55000.00 51718.91
 
Short Term Refinance – Position as on 31.12.2017

                                                                                                                            `crore
Agency Target for 2017-18 Achievement as on 31.12.2017
ST-SAO

StCB 44800.00 28487.87
RRB 10000.00 8114.17
PSB to PACs 200.00 0
Total 55000.00 36602.04
Additional ST(SAO) 5000.00 12120.48
ST(Others) and Weavers 1000.00 1229.50
 
Government Sponsored Schemes
                                                                                                                                  ` crore
S.No Name of the Scheme Cumulative Subsidy Disbursed as on 30.11.2017
1 Dairy Entrepreneurship Development Scheme 1173.44
2 Poultry Venture Capital Fund (Subsidy) scheme 197.65
3 Integrated Development of Small Ruminants and Rabbits 114.89
4 Pig Development 64.32
5 Salvaging and Rearing of Male Buffalo Calves 0.40
6 Agri Clinics and Agri Business Centers 64.65
7 National Project on Organic Farming 27.11
(xii) Manner of execution of subsidy programmes, including the amounts allocated and the details of beneficiaries of such programmes
ACABC -
 
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 RegionalOffices are confirmed for release to the respective banks.The statewise details of beneficiaries are available with NABARD Regional Offices and the nodal departments.

Animal Husbandry Schemes-
 
Regional Offices (ROs) of NABARD scrutinize claims received from banksand sanction the eligible subsidy, on finding the same suitable as per GoI guidelines. Subsequently, consolidated subsidy claims are forwarded by ROs to Dept. of Refinance, NABARD, Head Office (HO) at Mumbai seeking confirmation to release the subsidy. Time to time HO places indent for funds with GoI based on the claims from ROs. HO receives fund as and when the same is released by GoI . Based onavailability of funds from GoI ,HOgives confirmation to ROs for release of subsidy. As per GoI guidelines, subsidy is routed through the financing banks to the entrepreneurs by NABARD regional offices. Budget/funds for the scheme is allocated by GoI every year.

Dairy Entrepreneurship Development Schemes-
 
NABARD has launched a software for DEDS from 05.09.2017 for submission, scrutiny, sanction and release of Government Sponsored Subsidy Schemes applications. The software is expected to reduce drudgery at bank and NABARD level and bring about efficiency and transparency in the process of releasing subsidy..
(xiii) Particulars of recipients of concessions, permits or authorisations granted by the organisation The provisions under various schemes are equally applicable to all eligible institutions
(xiv) Details in respect of the information available to or held by it, reduced in an electronic form All relevant information are available in both hard and soft form
(xv) Particulars of facilities available to citizens for obtaining information, including the working hours of a library or reading room, if maintained for public use There is no library or reading room in DoR. The information sought for under RTI Act are provided in due course to the applicants through RTI cell
(xvi) The names, designations and other particulars of the Public Information Officers
Available on below link
(xvii) Such other information as may be prescribed and thereafter update these publications every year. NIL