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Corporation Bank to centralise processing of agri loans

Written by: Staff
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Mangalore, Aug 8 (UNI) The Mangalore-based public sector Corporation Bank has decided to introduce centralised processing of agriculture loans to rope in more farmers into the loan assistance net, Bank Chairman and Managing Director B Sambamurthy informed today.

Addressing a press conference at the launch of 'Corp Tax Saver,' a twin benefit tax saving term deposit scheme here, he said the Reserve Bank of India (RBI) had already given its approval for the proposal and it would be launched in Hassan within the next four to five weeks.

He said this new facility would not only help in concentrating on providing more loans to farmers, but also enable faster disbursal of loans. Facilitators would be used make farmers open more accounts in rural areas to avail this facility, he added.

Mr Sambamurthy said as per the guidelines of the RBI for financial inclusion, the bank had identified 160 branches across the country and surveyed 70 branches. The bank had approached panchayats for taking their assistance in collecting details about villagers who were yet to come under the banking net.

Talking about the newly-launched 'Corp Tax Saver,' scheme, he said the product would give the dual benefit of high returns and tax exemption under section 80 (C) of the Income Tax Act 1961. The product had two options--Tax Saving Fixed Deposit offering simple interest on monthly or quarterly or half-yearly or yearly basis at attractive rate of eight per cent with annual yield of 9.72 per cent and Tax Saving Kshemanidhi Cash Certificate (TSKCC) under which compound interest would be offered under reinvestment plan.

Senior citizens would get 8.75 per cent and the yield would be as as high as 11.52 per cent under reinvestment plan.

He said the period of deposits was fixed for five years with a minimum deposit of Rs 100 to maximum of Rs one lakh. Quoting permanent account number was mandatory for opening an account under this scheme.The bank had embarked on an ambitious plan of mobilising one lakh accounts under Corp Tax Saver during the current year, he added.

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