Agriculture Credit Disbursement increased to Rs 11,68,502.84 Cr in 2017-18: NABARD
Published: Aug 11, 2018
By TIOLCORPLAWS News Service
NEW DELHI, AUG 11, 2018: The MoS for Finance Mr Shiv Pratap Shukla had stated in Parliament that as reported by National Bank for Agriculture and Rural Development (NABARD), total Agriculture Credit Disbursement during the year 2015-16, 2016-17 and 2017-18 was Rs 9,15,509.92 cr, Rs 10,65,755.67 cr and Rs 11,68,502.84 cr respectively.
In terms of RBI's Master Direction dated July 07, 2016 on Priority Sector Lending-Targets and Classification, a target of 40 % of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher, had been set for lending to the priority sector by domestic scheduled commercial banks and foreign banks with 20 and above branches. Within this, a sub-target of 18 % of ANBC or Credit Equivalent amount of OBE, whichever is higher, had been prescribed to all domestic Scheduled Commercial Banks, including Small Finance Banks, for lending to Agriculture.
As against target of 40% of ANBC or Credit Equivalent amount of OBE for total priority sector lending, the achievement in respect of Commercial Banks was 40.12%, 39.13% and 40.09% in the year 2015-16, 2016-17 and 2017-18 respectively, as reported by RBI. For agriculture Advances, against target of 18% of ANBC or Credit Equivalent amount of OBE, the achievement in respect of Commercial Banks was 17.05%, 16.88% and 17.05% in the year 2015-16, 2016-17 and 2017-18 respectively, as reported by RBI.
RBI had informed that, there exist appropriate provisions to monitor the performance of banks against the stipulated targets/ sub-targets, including Agriculture. To ensure continuous flow of credit to priority sector, the guidelines have also prescribed monitoring of priority sector returns figures on ‘quarterly' basis.
As per the directions of RBI, Scheduled Commercial Banks having any shortfall in lending to priority sector should be allocated amounts for contribution to the Rural Infrastructure Development Fund (RIDF) established with NABARD and other Funds with NABARD/NHB/SIDBI/ MUDRA Ltd., as decided by the RBI from time to time. The interest rates on banks' contribution to RIDF or any other Funds, tenure of deposits, etc. shall be fixed by RBI from time to time. Further, non-achievement of the priority sector targets/ sub-targets are also taken into account by RBI while considering regulatory clearances/ approvals for various purposes to the banks.
