Executive Summary:
This circular from the Reserve Bank of India addresses the continuation of the Interest Subvention Scheme (ISS) for short-term crop loans for the year 2018-19. As advised by the Government of India (GoI), the scheme will continue on an interim basis, following the terms and conditions approved for 2017-18, until further instructions are received. A key change involves transitioning the scheme to a Direct Benefit Transfer (DBT) mode on In-kind services basis, which will require all loans processed in 2018-19 to be brought onto the ISS portal/DBT platform once launched.
Key Points / Main Content:
Interest Subvention Scheme Continuation:
* The Interest Subvention Scheme (ISS) for short-term crop loans will continue in 2018-19 as an interim measure.
* The scheme will operate under the same terms and conditions as approved for 2017-18.
Direct Benefit Transfer (DBT) Implementation:
* From 2018-19, the ISS will be implemented on a DBT mode on In-kind services basis, not In-cash basis.
* All loans processed in 2018-19 must be brought onto the ISS portal/DBT platform once it is launched.
Categorization of Schemes:
* The Plan/Non-plan categorization of schemes will be dispensed with for the ISS.
* The ISS 2018-19 will be settled as applicable in Plan Scheme viz. Scheduled Caste (SC), Scheduled Tribe (ST) and North East Region (NER) etc.
Data Reporting:
* Banks must capture category-wise data (General, SC, ST, NER-General, NER-SC, NER-ST) of beneficiaries for reporting on the ISS portal, individual farmer wise.
* This data is required for settling claims arising from 2018-19 onwards.
* Until the DBT portal is functional, banks should submit their claims category-wise.
Loan Categorization:
* The bank, in consultation with GoI, is working on detailed modalities for loan categorization.
* Until the modalities are finalized, banks may obtain category-wise data on a self-declaration basis.
* There should be no cap on the loans given under each category.
Impact Analysis:
Scheduled Commercial Banks (Public and Private Sector):
*Impact: Banks are responsible for implementing the Interest Subvention Scheme for 2018-19 according to the guidelines. They must adapt to the new DBT mode and ensure accurate data capture and reporting.
*Action Required: Banks must take note of the guidelines, implement the ISS for 2018-19, prepare for the DBT transition, capture category-wise data of beneficiaries, and submit claims accordingly.
Farmers:
*Impact: Farmers will continue to benefit from the Interest Subvention Scheme, but the mode of benefit transfer will change to DBT on In-kind services basis.
*Action Required: Farmers may need to provide self-declaration regarding their category (General, SC, ST, NER) to avail of the scheme. They will also need to be aware of the transition to DBT once the portal is launched.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the publisher of the notification.
Interest Subvention Scheme: A scheme by the Government of India to provide interest subvention on short-term crop loans.
Short-term Crop Loans: Loans provided to farmers for agricultural purposes with a short repayment period, eligible for interest subvention under the scheme.
Ministry of Agriculture & Farmers Welfare: The ministry within the Government of India responsible for agriculture and farmer welfare, involved in the Interest Subvention Scheme.
Government of India: The governing body of India, responsible for the Interest Subvention Scheme.
Financial Inclusion Development Department: A department within the Reserve Bank of India.
Scheduled Caste: A group of historically disadvantaged communities in India. Data related to this group needs to be captured by banks under the Interest Subvention Scheme.
Scheduled Tribe: A group of historically disadvantaged indigenous communities in India. Data related to this group needs to be captured by banks under the Interest Subvention Scheme.
भारतीय �रज़व र् ब�क
RESERVE BANK OF INDIA
www.rbi.org.in
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RBI/2017-18/190
FIDD.CO.FSD.BC.No.21/05.04.001/2017-18 June 7, 2018
The Chairman / Managing Director & CEOs
All Public & Private Sector Scheduled Commercial Banks
Madam/Sir
Continuation of Interest Subvention Scheme for short-term crop loans on interim
basis during the year 2018-19
Please refer to our circular FIDD.CO.FSD.BC.No.14/05.02.001/2017-18 dated August
16, 2017 on Interest Subvention Scheme for Short-term Crop Loans 2017-18 wherein
we had advised the continuation and implementation of the Interest Subvention Scheme
for the year 2017-18. As regards the Scheme for the year 2018-19, Ministry of
Agriculture & Farmers Welfare, Government of India (GoI) has informed that they have
initiated the process for continuation of the Interest Subvention Scheme 2018-19.
2. As advised by GoI, as an interim measure, the Interest Subvention Scheme will be
implemented in 2018-19 till further instructions are received, on the terms and
conditions approved for the Scheme for 2017-18, as contained in the above cited
circular. All banks are, therefore, advised to take note and implement the Interest
Subvention Scheme for 2018-19 accordingly.
िवत् तीय समावशे न और िवकास िवभाग,क��ीय कायार्लय, 10वीमंिजल, क��ीय कायार्लय भवन, पो.बा.सं.10014, मुंबई 400 001
टेलीफोन /Tel.No: 91-22-22661000 फैक्स/FaxNo: 91-22-22621011/22610948/22610943
ई-मेल/ Email ID:cgmincfidd@rbi.org.in
Financial Inclusion & Development Department, Central Office, 10thFloor, C.O. Building, Post Box No.10014, Mumbai 400 001
�हदंी आसान है, इसका �योग बढ़ाइये
“चेतावनी�रज़व र्बक� �ारा - :मेल, डाक, एसएमएस या फोन कॉल के ज�रए �कसी क� भी व्य ि�गत जानकारी जसै ेबक� के खात ेका ब्य ौरा, पासवडर् आ�द नह� मागंी
जाती ह।ै यह धन रखन ेया दने ेका �स्त ाव भी नह� करता ह।ै ऐस े�स्त ाव� का �कसी भी तरीके स ेजवाब मत दीिजए।"
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or
offers funds to anyone. Please do not respond in any manner to such offers.3. Further, as advised by GoI, from 2018-19 the ISS is being put on DBT mode on ‘In
kind/services’ basis and not on ‘In cash’ basis and all loans processed in 2018-19 are
required to be brought on ISS portal/DBT platform, once it is launched.
4. In terms of Govt. of India letter F.No. 1-4/2017-Credit –I dated August 16, 2017 (Copy
enclosed), the Interest Subvention Scheme as Plan-Non plan categorization of schemes
will be dispensed with. Accordingly, the Interest Subvention Scheme 2018-19 will be
required to be settled as applicable in Plan Scheme viz. Scheduled Caste (SC),
Scheduled Tribe (ST) and North East Region (NER) etc.
5. Therefore, banks are required to capture category-wise data (General, Scheduled
Caste (SC), Scheduled Tribes (ST), North Eastern Region (NER)-General, North
Eastern Region (NER)-SC, North Eastern Region (NER)-ST) of beneficiaries under the
Scheme for reporting of the same on ISS portal individual farmer wise to settle the
claims arising from 2018-19 onwards. Till such time the DBT portal becomes functional
banks are requested to submit their claims, category-wise as indicated above.
6. The Bank in consultation with Govt. is working on the detailed modalities regarding
categorisation of loans. Till such time the modalities are finalised, banks may obtain the
category-wise data on self-declaration basis. There should however be no cap on the
loans given under each category.
Yours faithfully,
(G.P.Borah)
Chief General Manager-in-Charge
Encl: As above