Reserve Bank has made Aadhar linkage mandatory for farmers who wish to avail short-term crop loans in 2017-18. In a notification issued from Mumbai yesterday, RBI has advised banks to make Aadhaar linkage compulsory to ensure hassle-free benefits to farmers under the Interest Subvention Scheme.
RBI has clarified that farmers can avail of short-term crop loans of up to 3 lakh rupees at subsidised interest rate of 7 percent that could go down to 4 percent on prompt repayment.
Meanwhile, in order to discourage distress sale and encourage farmers to store produce in warehouses, banks will provide subvention benefit to small and marginal farmers with Kisan Credit Cards for a further period of up to 6 months post-harvest.
Source:news air