RBI has changed the rules of Kisan Credit Card. In this, farmers get short term crop loan up to Rs 3 lakh at an interest rate of 7 percent per annum. Also, they get an additional 3 percent interest subvention for those who repay their loans immediately.
The RBI on Thursday revised the norms for banks to claim the amount of interest subvention provided to farmers under the short-term crop loan scheme from Kisan Credit Card (KCC) during the previous financial year. The Reserve Bank of India (RBI) in a circular said that pending claims for the financial year 2021-22 can be submitted by June 30, 2023 and have to be certified as “true and correct” by the statutory auditors .
Loan is available at an interest rate of 7 percent per annum
The Reserve Bank of India (RBI) said in a circular that the government provides 2 per cent interest subvention annually to banks to provide short-term crop loans up to Rs 3 lakh to farmers at an interest rate of 7 per cent per annum. An additional 3% interest subvention is provided to those farmers who pay their loans promptly. The effective interest rate for such farmers is 4 per cent.
Banks will have to take certificate from their auditor
The Reserve Bank of India (RBI) said in a circular that the Modified Interest Subvention Scheme for Short Term Loans for short term loans given for agriculture and allied activities through Kisan Credit Card (KCC) during 2021-22. for Agriculture and Allied Activities). As per its circular, banks will have to submit their claims on an annual basis duly certified by their statutory auditors.
Can be marked as additional claim
Any balance claim relating to disbursements made during the year 2021-22 as per the circular may be consolidated separately and marked as ‘Additional Claim’ and certified latest by June 30, 2023. could.
