Nabard infuses ₹1.46 lakh crore in rural banking system in 2019-201 min read . Updated: 03 Mar 2020, 05:49 PM IST
- Nabard has been extending financial support to the banks operating in rural areas to help them deploy their resources effectively
- So far in the current fiscal, Nabard has extended ₹66,397 crore in short-term credit and ₹6,704 crore long-term credit to rural cooperative banks
MUMBAI : National Bank for Agriculture and Rural Development on Tuesday said it has infused ₹1.46 lakh crore in the rural banking system during the current fiscal.
Nabard has been extending financial support to the banks operating in rural areas to help them deploy their resources effectively for meeting the credit needs of rural people, including farmers.
"As on February 28, 2020, ₹87,069 crore has been extended to cooperative banks and regional rural banks in short-term refinance. In addition, long-term refinance of ₹59,502 crore has also been provided to these banks as well as other financial institutions," National Bank for Agriculture and Rural Development (Nabard) said in a release.
So far in the current fiscal, the development finance institution has extended ₹66,397 crore in short-term credit and ₹6,704 crore long-term credit to rural cooperative banks.
Regional rural banks have availed ₹14,141 crore in short-term credit and ₹8,417 crore in long-term credit.
In addition, other banks, including small finance banks, have obtained long-term refinance of ₹37,895 crore, the release said.
It provides short-term refinance, which is essentially production credit, to banks to allow farmers meet their operational costs.
Long-term refinance is aimed at supporting sectors like dairy, poultry, fishery, farm mechanisation, irrigation, and non-farm sectors, among others.
The development is also directing its resources to increase institutional credit to rural sectors through non-banking financial institutions (NBFCs).
It has also extended ₹4,638 crore to NBFCs and MFIs so far in FY20.
This story has been published from a wire agency feed without modifications to the text.