186
project-specific loans are redeemed by the state governments, the same are
repaid to banks.
The end results of the above fund operations – deposits received,
repayment made, and the resultant outstandings each year – is depicted in
Table 6.2. Amounts of deposits shown against individual yeas in this table
pertain to different tranches of RIDF in operations in the respective years; so
are repayments. Deposits outstandings broadly represent loans outstandings
against state governments. There has occurred a steady increase in annual
deposits by banks implying that NABARD has been steadily expanding demands
on them for rural infrastructure loans for state governments; they have touched
`
75,107 crore as at the end of March 2012.
An Unexplained and Hidden Gap
The process explained above in the operations of RIDF leave behind
two major gaps in the information system. First, the so-called RIDF Corpus
Table 6.2: RIDF Deposits: Annual Receipts, Repayments and Outstandings
(Rupees Crore)
Year
Deposit Received
from Banks
Repayments Made
to Banks
Deposit Outstandings
(year-end)
1995-96
350
-
350
1996-97
1042
-
1,392
1997-98
1007
-
2399
1998-99
1338
129
3,608
1999-2000
2,306
395
5,426
2000-01
2,654
475
7,251
2001-02
3,591
1.117
9,725
2002-03
3,857
1,423
12,159
2003-04
2,159
2,229
12,089
2004-05
4,353
7273@
9,169
2005-06
6,092
1,287
13,974
2006-07
6,966
786
20,155
2007-08
11,808
1,370
30,593
2008-09
18,805
2,375
47,023
2009-10
16,399
3,553
59,869
2010-11
13,056
5,047
67,878
2011-12
15,241
8,012
75,107
@
An unusually high size of repayment during 2004-05 was due to prepayment of past high interest rate
borrowings by state governments; NABARD in turn repaid to banks
`
7,273 crore on deposits made under
tranches RIDF II to IX up to March 31, 2005. It may be recalled that the interest rates on RIDF loans to
state governments were gradually reduced from 13% under RIDF I to 11.5% under RIDF IV, 10.5% under
RIDF VII and was fixed at 2% above the bank rate (8.5% at the prevailing bank rate) under tranches VIII
and IX. Considering the declining trend in interest rates, the lending rates in respect of undisbursed
amounts of RIDF tranches IV to IX were restructured with effect from 1 November 2003 with the approval
of the RBI. Accordingly, the lending rates for loans disbursed under tranches IV to VII were fixed at 7% and
6.5% for RIDF VIII and IX , respectively (NABARD
Annual Report 2003-04
. p.74).
Source:
Culled out from individual annual reports of NABAED for respective years.
