Mumbai: The National Bank for Agriculture and Rural Development (Nabard) has released Rs10,200 crore as a part of the farm loan waiver scheme to co-operative and regional rural banks (RRBs).
This forms over 50 per cent of the claims to co-op and regional rural banks under the government's debt-waiver and debt relief scheme, Nabard chairman U C Sarangi said in a statement.
As per the cabinet decision, the apex agriculture bank is slated to receive Rs17,500 crore of the money allocated for debt relief.
Disbursals have been made to all banks which have submitted certified audited claims, the statement said, adding, further disbursals would be made after receipt of certified claims for all the banks.
The Reserve Bank at the request of the government had announced a provision of Rs25,000 crore to lending institutions immediately (against the farm debt waiver scheme).
While Nabard will receive Rs17,500 crore of this, Rs7,500 crore would be made available to commercial banks.
The RBI has created a special facility for lending to Nabard (Rs17,500 crore) and commercial banks (Rs7,500 crore) at 9 per cent interest for three weeks. The move was to immediately make available the money to lenders, who otherwise would have got it from the government by 1 November.
Commercial banks, cooperatives and regional rural banks implemented a Rs30,000 crore debt waiver and relief scheme on 30 June this year. The government will reimburse this in installments by 2011. Reimbursement to cooperatives and RRBs is through Nabard.
Nabard will bear the interest cost of 9 per cent to ensure that cooperatives and RRBs absorb the money. Nabard will work out sharing of the interest burden with the government later.