Continuation of Interest Subvention Scheme for short-term crop loans on interim basis during the year 2018-19

RBI/2017-18/190

FIDD.CO.FSD.BC.No.21/05.04.001/2017-18

June 7, 2018

The Chairman / Managing Director & CEOs

All Public & Private Sector Scheduled Commercial Banks

Madam/Sir

Continuation of Interest Subvention Scheme for short-term crop loans on interim basis during the year 2018-19

Please refer to our circular FIDD.CO.FSD.BC.No.14/05.02.001/2017-18 dated August 16, 2017 on Interest Subvention Scheme for Short-term Crop Loans 2017-18 wherein we had advised the continuation and implementation of the Interest Subvention Scheme for the year 2017-18. As regards the Scheme for the year 2018-19, Ministry of Agriculture & Farmers Welfare, Government of India (GoI) has informed that they have initiated the process for continuation of the Interest Subvention Scheme 2018-19.

2. As advised by GoI, as an interim measure, the Interest Subvention Scheme will be implemented in 2018-19 till further instructions are received, on the terms and conditions approved for the Scheme for 2017-18, as contained in the above cited circular. All banks are, therefore, advised to take note and implement the Interest Subvention Scheme for 2018-19 accordingly.

3. Further, as advised by GoI, from 2018-19 the ISS is being put on DBT mode on ‘In kind/services’ basis and not on ‘In cash’ basis and all loans processed in 2018-19 are required to be brought on ISS portal/DBT platform, once it is launched.

4. In terms of Govt. of India letter F.No. 1-4/2017-Credit –I dated August 16, 2017 (Copy enclosed), the Interest Subvention Scheme as Plan-Non plan categorization of schemes will be dispensed with. Accordingly, the Interest Subvention Scheme 2018-19 will be required to be settled as applicable in Plan Scheme viz. Scheduled Caste (SC), Scheduled Tribe (ST) and North East Region (NER) etc.

5. Therefore, banks are required to capture category-wise data (General, Scheduled Caste (SC), Scheduled Tribes (ST), North Eastern Region (NER)-General, North Eastern Region (NER)-SC, North Eastern Region (NER)-ST) of beneficiaries under the Scheme for reporting of the same on ISS portal individual farmer wise to settle the claims arising from 2018-19 onwards. Till such time the DBT portal becomes functional banks are requested to submit their claims, category-wise as indicated above.

6. The Bank in consultation with Govt. is working on the detailed modalities regarding categorisation of loans. Till such time the modalities are finalised, banks may obtain the category-wise data on self-declaration basis. There should however be no cap on the loans given under each category.

Yours faithfully,

(G.P.Borah)

Chief General Manager-in-Charge

Encl: As above