The refinance policy for PUCBs for the F. Y. 2018-19 has been finalized. It has led down certain eligibility criteria including conditions prescribed by RBI, for being classified as“Financially Sound and Well Managed”, read a press release mailed by Nabard to Indian Cooperative.
Some of the criteria are: CRAR of not less than 10% as on 31.03.2017 for a scheduled bank.With ‘A’ or ‘B’ audit classification as on 31.03.2017. Net profit for at least three out of the preceding four years i.e. F. Y. 2013-14, 2014-15, 2015-16 and 2016-17; subject to it not having incurred a net loss in the immediate preceding year (F. Y. 2016-17). Gross NPA of less than 7% and Net NPA not exceeding 3% as on 31.03.2017.
Other conditions include No default in the maintenance of CRR and / or SLR during the preceding financial year (F. Y. 2016-17), Core Banking Solution (CBS) fully implemented. In case of improvement or deterioration in respect of any of the above parameters as on 31.03.2018, the same will be reckoned for determining the eligibility of the PUCBs.
The thrust areas for which preference will be given for release of refinance during 2018-19 will include land development, minor & micro irrigation, water saving and water conservation devices, fisheries, animal husbandry, SHGs/ JLGs/ Rythu Mithra Groups(RMGs), agri-clinics and agri-business centres.
There is special emphasis on rural sector such as rural housing, agro-processing,wasteland development, dryland farming, contract farming, area development schemes,plantation & horticulture, agro-forestry, seed production, tissue culture plant production, agri-marketing infrastructure (including cold storage, godowns, market yards etc.), agriculture implements, non-conventional energy sources, financing in areas of watershed & tribal development programmes already implemented.
Banks should give preference to finance innovative activities in the horticulture sector such as production of high value vegetables,cut flowers under controlled conditions i.e. poly house/green house, establishment of hi-tech export oriented production like mushroom, tissue culture labs, precision farming for enhancement of productivity in vegetables and fruits, installation of micro irrigation systems like drip for orchard and plantation crops.
The extent of refinance for the States in North Eastern Region (Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura) including Sikkim, Hilly Region (Jammu & Kashmir, Himachal Pradesh, Uttarakhand), Eastern Region (West Bengal, Odisha, Bihar, Jharkhand and Andaman & Nicobar Islands), Lakshadweep and Chhattisgarh will be 100% of eligible bank loans for all purposes. For other Regions, the extent of refinance will be 100% for all thrust areas. 95% for all other diversified purposes and for Krishak Sathi Yojana.
To take care of exposure risk on cumulative basis, the total refinance outstanding should not be more than the quantum of performing loans, as per the latest classification, as per RBI guidelines
Automatic Refinance Facility will be extended to PUCBs without any upper ceiling of quantum of refinance, bank loan or TFO for all projects, both under Farm Sector (FS) &Off-Farm Sector. In case, any bank intends to avail refinance under pre-sanction procedure, they may submit projects to NABARD.