Bombay:
Reserve Bank of India (RBI) on Thursday changed the standards for banks to claim the amount of interest subsidy provided to farmers under the Kisan Credit Card (KCC) short-term crop loan during the last fiscal year.
Pending claims for the 2021-2022 fiscal year can be filed by June 30, 2023 and must be duly certified by the commissioners “as true and correct,” the Reserve Bank of India (RBI) said in a circular.
To provide farmers with short-term crop loans of up to Rs 3 lakh at an interest rate of 7 percent per annum, the government is offering banks an interest subsidy of 2 percent per annum.
An additional 3 percent interest subsidy is provided to farmers who pay off their loans quickly. For such farmers, the effective interest rate is 4 percent.
According to the Circular on “Amended Interest Subsidy Scheme for Short-Term Loans for Agriculture and Related Activities Used Through Kisan Credit Card (KCC)” in 2021-22, banks are required to file their claims on an annual basis duly certified by their statutory auditors as true and correct, within a quarter of the year-end.
Any remaining claim relating to the payouts made during the year 2021-22 and not included in the claim as of March 31, 2022, may be separately consolidated and marked as an ‘Additional Claim’ and filed no later than June 30, 2023, due certified by the commissioners as truthful and correct,” it said.