Rs 2,615 cr interest subvention to PSBs, RRBs: Cabinet

New Delhi, Mar 7 (UNI) The Centre today approved the release of Rs 2,615 crore (subject to actuals) as interest subvention to public sector banks, regional rural banks, cooperative banks and NABARD.

The amount would be utilised for refinancing RRBs and cooperative banks at concessional rates to reimburse the amount of interest subvention for the decision that the farmer should receive short term credit at 7 per cent a year with an upper limit of Rs 3 lakh on the principal amount during 2007-08.

The borrowers who avail short term crop loans up to Rs 3 lakh would be instantly benefitted, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the decision was taken at a Cabinet meeting chaired by Prime Minister Manmohan Singh.

UNI SN RP RN1938