The 1st step to boost credit flow to agriculture sector is targeting. This targeting practices is followed for raising the flow of agriculture credit. As the budget allocation increased to 1.42 lakh crore in financial year 2019-20 accordingly flow of credit should increase and to be followed.
2nd step is crop loan : Arrangement has been made to provide crop loan to farmers. Along with crop loan proper communication to farmers about timely repayment and net interest charge that is 4 % should be more emphatic.
3rd step is Discouraging distress sale: In order to discourage distress sale of crops by farmers the benefit of interest subvention has been made available to small and marginally farmers having Kisan cards for a further period of 6 months against negotiable warehouse receipts at the commercial rates. Also other farmers are also covered under warehouse receipt loan up to 50 lakh. This is one of the good scope of financing.
4th step is Relief for natural calamities: In order to provide relief to farmers on occurrence of natural calamities interest subvention of 2% will continue to available to banks for the first year on restructured loan.
In case of severe calamities fresh loan can be sanctioned as per RBI guide lines that is another grey area for financing.
5th step is to finance actors along the value chain: The focus is on the links between different actors along a value chain. Agriculture entails a sequence of interlinked activities - transaction- in a chain that starts from the supply of seeds and fertilizers and finish in the mouth of consumers. These are financial instruments specially designed to strengthen these links between the actors along the value chain.
Denne historien er fra December 2019-utgaven av BANKING FINANCE.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 2019-utgaven av BANKING FINANCE.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
'Deep Fake' - an emerging risk for Banking & Financial Sector
Deepfake KYC fraud is a growing concern in India, where fraudsters leverage AI-generated deepfake videos and images to bypass Know-Your-Customer (KYC) verification processes. This has significant implications for financial institutions, fintech companies, and other organizations that rely on KYC to verify the identity of their customers.
RBI CIRCULAR
Operational framework for reclassification of Foreign Portfolio Investment to Foreign Direct Investment (FDI) - November 11, 2024
India's Fiscal Discipline: A Path to Economic Stability and Growth
In a significant economic development, the fiscal deficit for the financial year 2023-2024 (FY24) has been recorded at 5.6% of GDP, falling below the government's revised estimate. This unexpected positive outcome highlights effective fiscal management and a recovering economy, offering a ray of optimism amidst global economic uncertainties.
Augmenting Productivity by Embracing Employee Engagement
As the world's largest coffeehouse chain, Starbucks is a brand that understands the value its employees add to the business. At Starbucks, every employee knows they are valued members of the team. It took Starbucks some time to do this. They have prioritized implementing employee-friendly rules from the beginning.
Ethics in Artificial Intelligence: Navigating the Future Responsibly
Ethics in AI encompasses a wide range of issues, including fairness, accountability, transparency, and the potential for bias. At the core of these discussions lies the question: How do we ensure that AI serves humanity rather than undermines it? As AI systems increasingly influence critical areas such as healthcare, finance, and law enforcement, the stakes are high.
Digital Banking: The Need of the Hour
Development of an economy, especially economic growth primarily depends on industrial development. The industries depend on financial institutions support for funds especially from banks. Banks encourage individuals save and mobilise funds from bank deposits.
Cyber Crimes in Banking: India's Battle Against the Digital Menace
The increasing adoption of digital banking services has transformed the way Indian consumers engage with banks. According to research from the Reserve Bank of India (RBI), the country's digital payment ecosystem expanded by approximately 55% between 2021 and 2023.
Legal News
The Supreme Court (SC) ruled that clauses allowing public sector undertakings (PSUs) to unilaterally appoint arbitrators to resolve disputes with private contractors are invalid.
The Rise Of Green Marketing: Driving Sustainable Change
Green marketing refers to the practice of promoting products or services that are environmentally friendly or sustainable. It involves incorporating eco-friendly elements into various aspects of marketing strategies, including product development, packaging, advertising, and distribution.
ICICI Bank partners with PhonePe to offer instant credit on UPI
ICICI Bank announced that it has partnered with PhonePe to offer instant credit on UPI to its pre-approved customers on the app of the digital payments company.
