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The National Bank for Agriculture and Rural Development (Nabard), on Tuesday, said it has disbursed ₹12,767 crore to State Co-operative Banks (StCBs) and Regional Rural Banks (RRBs) across the country to augment their resources for extending credit to farmers during the ongoing lockdown.
There are 33 StCBs and 45 RRBs in the country, and they are important intermediaries in the rural credit structure.
Nabard has extended the refinance (May 4 and May 5)to these rural banks in 15 States so far, including Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Odisha, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal, the All-India Financial Institution (AIFI) said in a statement. On April 17, the RBI had announced a ₹50,000-crore refinance facility for three AIFIs – Nabard, the Small Industries Development Bank of India (SIDBI), and the National Housing Bank (NHB).
Long-term funding
These AIFIs play an important role in meeting the long-term funding requirements of agriculture and the rural sector, small industries, housing finance companies, non-banking finance companies, and microfinance institutions (MFIs).
Of the ₹50,000-crore refinance, Nabard got ₹25,000 crore for refinancing RRBs, co-operative banks and MFIs. Nabard said it has augmented the resources of the rural banks to the tune of ₹30,021 crore to since the second half of March 2020 when the lockdown came into force in different States as a measure to contain the spread of Covid19 pandemic.
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