Categories: Business

Banks approve 62,870 crore loan for 70 lakh Kisan Credit Card holders, 2.5 crore farmers will benefit

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Banks sanction Rs 62,870 crore to over 70 lakh Kisan Credit Card holders

new Delhi. Banks have issued 70.32 lakh Kisan Credit Cards to the farmers with a loan limit of Rs 62,870 crore to meet the sowing requirements during Kharif. Finance Minister Nirmala Sitharaman wrote on Twitter that as on June 30, 2020, 70.32 lakh Kisan Credit Cards have been issued under the self-sufficient package with a loan limit of Rs 62,870 crore under a total loan of Rs 2 lakh crore.

It is noteworthy that the government had announced a concessional loan of Rs 2 lakh crore through Kisan Credit Card to 2.5 crore farmers including fishermen and farmers associated with the animal husbandry industry in May.

30 thousand crore special cash scheme for non-banking lenders

The government has launched a scheme of 30 thousand crores. Under this, short-term cash will be made available to non-banking lenders through a special purpose body (SPV). The SPV is established by SBI Cap, a subsidiary of State Bank of India. This special scheme was announced by Finance Minister Nirmala Sitharaman in March this year. It aims to improve the cash position of non-banking financial companies (NBFCs) and housing finance companies (HFCs).

The Reserve Bank of India said in a notification on Wednesday that the SPVs created under the scheme would buy short-term debt certificates issued by them from qualified non-banking lenders. The money received from this will be used by these lenders to repay their current liabilities. A release issued by the Ministry of Finance stated that the Reserve Bank will provide finance for this special cash scheme by purchasing government guaranteed special securities. These securities will be issued by LSL Trust established by SBI Capital Markets Limited.

The amount to be raised from such securities will not exceed 30 thousand crore rupees at any time. The government will give unconditional guarantee for the special securities issued by this trust. According to the ministry, the plan is being released on July 1, 2020. The scheme will be issued by SLS Trust which has been set up by SBICAP as an SPV.

This post was published on July 2, 2020 9:35 am

Content Team

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