NABARD releases Rs 20,500 crore for Kharif and pre-monsoon operations
For on-lending to farmers, NABARD (National Bank for Agriculture and Rural Development) has disbursed Rs 20,500 crore to cooperative banks and RRBs (regional rural banks).
This amount is part of the Rs 25,000 crore of special refinance facility provided by RBI to NABARD for refinancing RRBs, cooperative banks and microfinance institutions.
It is worth mentioning that RBI in April announced a special refinance facility for several financial institutions, including NABARD, SIDBI and NHB, to help them meet the financing needs of their respective stakeholders amid COVID-19 pandemic.
“We have extended Rs 20,500 crore with Rs 15,200 crore to cooperative banks and the balance of Rs 5,300 crore to RRBs as special liquidity facilities in various states,” NABARD said in a release.
The fund is given as a means of front-loading the resources of cooperative banks and RRBs so as to ensure adequate liquidity with them for financing farmers for taking up pre-monsoon and Kharif 2020 operations, the financial institution added.
According to the lender, the banks have also kickstarted a programme of saturation of KCC cards. Notably, around 4.2 crore Kisan Credit Cards have been issued by RRBs and Cooperative banks as on 31 March 2020.