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Banks Play A Vital Role in Success Of New Crop Loan Scheme: RBI

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Lenders play a vital role in the success of recently launched crop loan scheme Pradhan Mantri Fasal Bima Yojana (PMFBY), the Reserve Bank said.

“Banks have a vital role to play in increasing the coverage under the scheme,” RBI said It said bank branches in the 45 districts, where the plan is being piloted, will have to make sure about 100 percent coverage of loanee farmers. The plan is compulsory for loanee farmers availing Seasonal

Agricultural Operational (SAO) Loans or Kisan Credit Card (KCC). As the plan is voluntary for non-loanee farmers, banks have to concentrate on supporting peasants, who have opened accounts under the Jan Dhan scheme, in getting crop insurance, including directing them through the whole process, it said.

The RBI also ensign lack of compilation of land details and crop sown facts of the loanee farmers availing crop loan by the banks as a key issue. Lack of such details has resulted in non-availability of necessary data on real time basis for monitoring and planning purposes.

The regulator said an integrated IT platform, which can be accessed by all financial institutions, can help in providing real time data.

It proposed to start development of an integrated platform on a pilot basis. Accepted by the Centre in January, PMFBY will replace the existing National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS) from the kharif season (summer crops) of 2016.

 

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