AGRICULTURALCREDIT

Key Features:

• • Flexible credit limit based on cropping pattern
• • Interest rate: 7% p.a. (4% with subsidy)
• • Revolving credit facility
• • Crop insurance coverage
• • ATM/POS facility
• • Validity: 5 years with annual review

Eligibility & Benefits:

• • All farmers (landowners & tenants)
• • SHG members & JLG farmers
• • Fishermen & dairy farmers
• • No collateral up to ₹1.60 lakh
• • Prompt repayment incentive
• • Accident insurance cover

Scheme Details:

• • Direct income support: ₹6,000/year
• • Three installments of ₹2,000 each
• • Direct bank transfer (DBT)
• • Covers all landholding farmers
• • No land size restriction
• • Aadhaar-based verification

Implementation:

• • State government identification
• • Online registration portal
• • Mobile app facility
• • Beneficiary database
• • Regular verification process
• • Grievance redressal mechanism

Insurance Coverage:

• • Comprehensive risk coverage
• • Pre-sowing to post-harvest
• • Natural calamities protection
• • Prevented sowing coverage
• • Mid-season adversity
• • Post-harvest losses

Premium Structure:

• • Kharif crops: 2% of sum insured
• • Rabi crops: 1.5% of sum insured
• • Commercial crops: 5% of sum insured
• • Government subsidy: Balance premium
• • Technology-based assessment
• • Quick claim settlement

Subvention Benefits:

• • 3% interest subvention on crop loans
• • Effective rate: 4% p.a. for farmers
• • Additional 3% for prompt repayment
• • Net effective rate: 1% p.a.
• • Covers loans up to ₹3 lakh
• • Available for one year

Eligibility Conditions:

• • All farmers eligible
• • Timely repayment required
• • Crop loan classification
• • Bank certification needed
• • No overdue amounts
• • Proper documentation

Enhanced Features:

• • Extended to animal husbandry
• • Fisheries sector inclusion
• • Dairy farming coverage
• • Poultry & goat rearing
• • Bee-keeping activities
• • Sericulture operations

Implementation:

• • NABARD coordination
• • Bank-wise allocation
• • Quarterly reimbursement
• • Performance monitoring
• • Digital tracking system
• • Audit & verification

Key Functions:

• • Apex development bank
• • Refinance to banks
• • Policy formulation
• • Supervision of RRBs
• • Rural infrastructure development
• • Capacity building programs

Services Provided:

• • Credit planning & monitoring
• • Research & development
• • Training & consultancy
• • Financial inclusion initiatives
• • Technology promotion
• • Impact assessment

Structure & Ownership:

• • Central Government: 50%
• • State Government: 15%
• • Sponsor Bank: 35%
• • 43 RRBs operational
• • Rural focus mandate
• • Local area banks

Services Offered:

• • Agricultural loans
• • Rural development credit
• • Deposit mobilization
• • Government scheme implementation
• • Financial literacy
• • Digital banking services

Central Schemes:

• • Agricultural Debt Waiver Scheme
• • Distress relief packages
• • Natural calamity support
• • Crop failure compensation
• • Emergency credit facilities
• • Rehabilitation programs

State Initiatives:

• • State-specific waiver schemes
• • Interest subvention programs
• • Restructuring facilities
• • One-time settlement schemes
• • Farmer welfare funds
• • Legal aid provisions

SARFAESI Act Protections:

• • Small farmer exemption (loans < ₹1 lakh)
• • 60-day notice requirement
• • Objection & representation rights
• • DRT appeal provisions
• • Valuation safeguards
• • Surplus distribution rights

Procedural Safeguards:

• • Due process requirements
• • Notice and hearing rights
• • Legal representation
• • Appeal mechanisms
• • Stay provisions
• • Judicial review

RBI Guidelines:

• • Base rate/MCLR linkage
• • Interest rate caps
• • Transparent pricing
• • No hidden charges
• • Prepayment flexibility
• • Fair practices code

Lending Standards:

• • Know Your Customer (KYC)
• • Credit assessment norms
• • Documentation standards
• • Collateral requirements
• • Loan monitoring
• • Customer grievance redressal

Agricultural Provisions:

• • Priority sector lending mandate
• • Agricultural credit targets
• • Interest rate regulations
• • Branch licensing for rural areas
• • Cooperative bank regulations
• • RBI supervisory powers

Farmer Protections:

• • Fair lending practices
• • Grievance redressal
• • Transparency requirements
• • Customer protection
• • Regulatory oversight
• • Penalty provisions

Institutional Framework:

• • Development banking mandate
• • Refinance operations
• • Rural infrastructure development
• • Capacity building programs
• • Research & development
• • Policy formulation support

Farmer Support:

• • Credit flow facilitation
• • Technology promotion
• • Financial inclusion
• • Skill development
• • Market linkage support
• • Innovation funding

State Legislation:

• • Agricultural Credit Relief Acts
• • Debt Relief & Settlement Acts
• • Cooperative Societies Acts
• • Land Revenue Codes
• • Agricultural Marketing Acts
• • Farmer Welfare Acts

Protection Measures:

• • Interest rate caps
• • Recovery moratoriums
• • Asset protection
• • Rehabilitation schemes
• • Legal aid provisions
• • Dispute resolution mechanisms

Credit Norms:

• • Scale of finance guidelines
• • Crop loan assessment
• • Security & collateral norms
• • Repayment schedules
• • Interest rate structure
• • Documentation requirements

Operational Guidelines:

• • Loan processing timelines
• • Disbursement procedures
• • Monitoring mechanisms
• • Recovery procedures
• • Restructuring norms
• • Write-off guidelines

Targets & Categories:

• • Agriculture: 18% of ANBC
• • Small & marginal farmers: 8%
• • Micro enterprises: 7.5%
• • Export credit: 5%
• • Social infrastructure: 3.5%
• • Renewable energy: 1.5%

Compliance Measures:

• • Quarterly monitoring
• • Shortfall penalties
• • RIDF contributions
• • Performance evaluation
• • Incentive structures
• • Regulatory reporting

Access Enhancement:

• • Banking correspondent model
• • Digital payment systems
• • Mobile banking services
• • ATM/POS deployment
• • Financial literacy programs
• • Simplified account opening

Technology Integration:

• • Core banking solutions
• • Aadhaar-based authentication
• • Biometric verification
• • Satellite imagery for assessment
• • AI-based credit scoring
• • Blockchain applications

Jurisdiction & Powers:

• • Agricultural credit disputes
• • Service deficiency complaints
• • Unfair practices issues
• • Award up to ₹20 lakh
• • Free of cost proceedings
• • Binding on banks

Complaint Process:

• • Online complaint filing
• • 30-day bank response period
• • One year limitation
• • Documentary evidence
• • Conciliation attempts
• • Final award within 30 days

Jurisdiction:

• • Debt recovery cases ≥ ₹20 lakh
• • Bank & financial institution cases
• • SARFAESI Act appeals
• • Securitisation disputes
• • Asset reconstruction matters
• • Enforcement proceedings

Farmer Protections:

• • Right to legal representation
• • Stay on recovery proceedings
• • Cross-examination rights
• • Appeal to DRAT
• • Interim relief provisions
• • Expedited hearings