Cooperative Banks to give farm loan at 7 pc: Cabinet
New Delhi, Nov 23 (UNI) The Cabinet today allowed the Cooperative Banks to extend farm loans at 7 per cent, marking the implementation in full of the Budget 2006-07 announcement under which farmers can avail of short-term loans of upto Rs 3 lakh each.
Making the announcement, Finance Minister P Chidambaram said the Cooperative banks would have to make such advances from their own resources.
The subvention to such banks would be Rs 330 crore, while the total subvention amounts to Rs 1,955 crore -- Public Sector banks Rs 825 crore, Regional Rural Banks Rs 188 crore, Nabard for the refinanced part Rs 612 crore.
The Cabinet meeting chaired by Prime Minister Manmohan Singh also took 11 other decisions.
One approval pertained to recognising new systems of medicine. A Bill would be introduced in Parliament to this effect. At present, the systems which are recognised are allopathy, Ayurvedi, Siddha, Unani, Homoeopathy, yoga and naturopathy.
The Cabinet withdrew the earlier proposal of allowing MMTC to participate in a banking subsidiary in Russia in view of the ''changed circumstances.'' It approved post facto a proposal for an agreement between India and Kuwait on checking of illicit trafficking of narcotic substances.
There would be an amendment to the 1997 protocol with Romania to reflect the fact that Romania is a member of the European Union.
The Securities Contracts Regulation Act would be amended incorporating the recommendations of the Standing Committee.
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