The State level Bankers’ Committee which met in the presence of Maharashtra Chief Minister Uddhav Thackeray in Mumbai, has approved a resolution asking for restoration of 2 per cent interest subvention.

In a letter to Agriculture Minister Narendra Singh Tomar, Thackeray said a circular issued earlier this year by the farm ministry and Nabard (National Bank for Agriculture and Rural Development) said that the 2 per cent interest subvention scheme for short-term crop loans had been modified and the subsidy would not be available from fiscal 2022-23.

“This (discontinuation of scheme) will have an adverse impact on the financial position of cooperative banks and, in turn, will have a serious negative impact on the distribution of short-term crop loans to farmers in the state,” the CM said in the letter.

Thackeray said 2 per cent interest subvention or subsidy available to cooperative as well as nationalised banks under the scheme, had enabled these lending institutions to disburse short-term crop loans to farmers at concessional rates.

Credit Plan

The Bankers’ Committee also approved a Rs 26 lakh 33,000 crore credit plan, which is 45.37 per cent higher than that of last year. The agriculture sector has been allocated Rs 1 lakh 26,000 crore, which includes Rs 64,000 crore for crop loans.

Thackeray said banks should extend loans to farmers as the monsoon is all set to commence.

(with PTI inputs)

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