Home India FINANCE Parliament Question: Agricultural Loan by Public and Private...
Date: 2026-02-09 Category: Not Applicable State: Union Government Country: India

Parliament Question: Agricultural Loan by Public and Private Sector Banks

Issued by FINANCE · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document presents the response to an unstarred question in Lok Sabha regarding agricultural loans by Public and Private Sector Banks. It provides data on agricultural advances disbursed by these banks over the past three financial years (2022-2023 to 2024-2025). It also outlines the steps taken by the Government and RBI to improve customer service, address grievances, and enhance transparency in disbursing agricultural loans. **Key Points / Main Content** * **Agricultural Advances Data**: * Over the last three years, Public Sector Banks (PSBs) and Private Sector Banks have recorded a CAGR of 26% and 11% respectively in total agricultural advances. * Bank-wise/Bank group-wise and State/UT-wise data on agricultural advances disbursed during Financial Year 2022-2023 to 2024-2025 are detailed in Annexure-I and Annexure-II. * **Grievance Redressal Mechanisms**: * The Government of India and RBI have undertaken various initiatives to improve customer service and strengthen grievance redressal mechanisms. * These include issuing customer service guidelines and implementing the Reserve Bank Integrated Ombudsman Scheme, 2021. * The Centralized Public Grievance Redressal and Monitoring System (CPGRAM) portal allows citizens, including bank customers, to lodge grievances. * **One-Time Settlement Schemes**: * Details of loans settled by farmers under one-time settlement schemes are not maintained by RBI. * RBI attributes the increase in NPAs to various factors such as macroeconomic conditions, sectoral issues, and the global business environment. * RBI has initiated several measures to resolve stressed assets, entrusting banks' Boards with effective oversight. * **Measures for Transparency and Efficiency**: * The Government introduced the Kisan Credit Card (KCC) Scheme to provide farmers with hassle-free and timely credit. * The KCC Scheme has been simplified and converted into an ATM-enabled RuPay debit card with various features like one-time documentation. * Union/State Governments, RBI, NABARD, and Banks conduct awareness programs about the KCC scheme. * The Jan Samarth portal has been launched as a one-stop digital platform for linking Government-sponsored loan and subsidies Schemes. * The Kisan Rin Portal (KRP) was launched in September 2023 to enable Aadhaar-based beneficiary verification and faster digital claim settlements under the Modified Interest Subvention Scheme (MISS) for loans availed through KCC. **Impact Analysis** **Stakeholder: Farmers** * **Impact**: Improved access to agricultural loans, streamlined grievance redressal, and enhanced transparency in the loan disbursement process. The Kisan Credit Card (KCC) scheme enables farmers to purchase agricultural inputs and draw cash for their needs. * **Action Required**: Utilize the KCC scheme, Jan Samarth portal, and Kisan Rin Portal (KRP) to access loans and subsidies. Lodge grievances through the CPGRAM portal if needed. **Stakeholder: Public and Private Sector Banks** * **Impact**: Increased responsibility for disbursing agricultural loans efficiently and transparently. Banks are also responsible for overseeing the implementation of various government schemes like the KCC. * **Action Required**: Implement customer service guidelines, participate in awareness programs, and ensure effective oversight in resolving stressed assets. **Stakeholder: Reserve Bank of India (RBI)** * **Impact**: Oversight and regulation of agricultural lending practices. Responsibility for grievance redressal and monitoring of Non-Performing Assets (NPAs). * **Action Required**: Continue to monitor and regulate the agricultural lending practices of banks, implement grievance redressal mechanisms, and work towards resolving stressed assets.

Key Entities Referenced

Kisan Credit Card (KCC) Scheme: A scheme enabling farmers to purchase agricultural inputs and draw cash for their needs. Reserve Bank of India (RBI): The central bank of India, involved in regulating and monitoring agricultural loans. Agricultural Loan: Loans disbursed by Public and Private Sector Banks for agricultural purposes. Ministry of Finance: The ministry responsible for answering questions related to agricultural loans. Centralized Public Grievance Redressal and Monitoring System (CPGRAM): A portal for citizens to lodge grievances with public authorities.
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GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 1426 ANWERED ON MONDAY, 09 FEBRUARY, 2026/MAGHA 20, 1947 (SAKA) Agricultural Loan by Public and Private Sector Banks 1426. Shri Anup Sanjay Dhotre: Will the Minister of FINANCE be pleased to state: (a) whether the Government is aware of the fact that the gap between disbursement of agricultural loan by Public and Private Sector Banks (PSBs) has widened in the country during the last three financial years and the current year, if so, the details thereof along with the reasons therefor, year, bank-wise and State/UT-wise; (b) whether the Government has received complaints against PSBs for denial or showing reluctance for agricultural loan to the farmers across the country during the said period; (c) if so, the details thereof along with the action taken/being taken by the Government on such complaints so far, bank-wise and State/ UT-wise; (d) the details of loans settled by farmers under one-time settlement scheme along with its impact on Non-Performing Assets of the Banks; and (e) the steps being taken by the Government to bring transparency in disbursing agricultural loan to the farmers? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) Over the last three years, total agricultural advances of Public Sector Banks and Private Sector Banks (including Small Finance Banks) have recorded a CAGR of 26%, and 11% respectively. As reported by Reserve Bank of India (RBI), the bank-wise/bank-group-wise and state-wise data on agricultural advances disbursed during Financial Year 2022-2023 to 2024- 2025 are provided in Annexure-I and Annexure-II. (b) and (c) The Government of India and the RBI have undertaken various initiatives to improve customer service and strengthen grievance redressal mechanisms in banks, including issuing customer service guidelines and implementing the Reserve Bank – Integrated Ombudsman Scheme, 2021. Additionally, the Centralized Public Grievance Redressal and Monitoring System (CPGRAM) portal is available for citizens, including bank customers, to lodge grievances with public authorities regarding service delivery.(d) The details of loans settled by farmers under one-time settlement scheme is not maintained by RBI. It has further stated that an increase in NPAs may be attributed to a confluence of factors, including prevailing macroeconomic conditions, sectoral issues, global business environment, etc. Reserve Bank has taken several initiatives aimed at resolution of long- standing stressed assets as well as for timely identification and rectification of stress, with the banks’ Boards entrusted with the responsibility of ensuring effective oversight. (e) The Government has taken following measures to bring transparency and efficiency in disbursing agricultural loan to the farmers: • With a view to ensure that all eligible farmers are provided with hassle-free and timely credit for their agricultural operations, the Government has introduced the Kisan Credit Card (KCC) Scheme, which enables farmers to purchase agricultural inputs such as seeds, fertilizers, pesticides, etc. and draw cash to satisfy their agricultural and consumption needs. The KCC Scheme has since been simplified and converted into ATM enabled RuPay debit card with, inter alia, facilities of one-time documentation, built-in cost escalation in the limit, any number of drawals within the limit, etc. • In order to bring awareness about the benefits of the KCC scheme among farmers, Union/State Governments, RBI, NABARD and Banks conduct various awareness programmes and IEC (Information, Education and Communication) campaigns. • The Jan Samarth portal has been launched as a one-stop digital platform for linking Government-sponsored loans and subsidies Schemes. It provides a quick and efficient way to apply for loans and obtain approvals based on a digital evaluation of the applicant's data. • The Government has launched the Kisan Rin Portal (KRP) in September 2023, enabling Aadhaar-based beneficiary verification and faster digital claim settlements under the Modified Interest Subvention Scheme (MISS) for loans availed through KCC. *****Annexure-I Annexure-I referred to in part (a) of Lok Sabha Un-Starred Question no. 1426 on “Agricultural Loan by Public and Private Sector Banks” answered on 09.02.2026 Bank-wise/Bank group-wise data on Agricultural Advances by Public Sector Banks (PSBs) and Private Sector Banks (Amount in Rs. crore) 2023 2024 2025 S.No. State Amount Disbursed Amount Disbursed Amount Disbursed 1 BANK OF BARODA 111518 124825 148194 2 BANK OF INDIA 61650 13949 51037 3 BANK OF MAHARASHTRA 9506 8921 13193 4 CANARA BANK 194554 241919 254536 5 CENTRAL BANK OF INDIA 25016 33465 41174 6 INDIAN BANK 78844 93699 118652 7 INDIAN OVERSEAS BANK 38846 51559 94548 8 PUNJAB AND SIND BANK 2277 2674 3439 9 PUNJAB NATIONAL BANK 112292 102891 138091 10 STATE BANK OF INDIA 139940 268260 296338 11 UCO BANK 14076 18790 13471 12 UNION BANK OF INDIA 25286 123099 132311 13 PUBLIC SECTOR BANKS (PSBs) 813806 1084051 1304983 14 PRIVATE SECTOR BANKS (PvtSB) 642022 742327 798223 15 SMALL FINANCE BANKS (SFBs) 43250 45512 46478 Total 14,99,078 18,71,891 21,49,685 Source: RBIAnnexure-II Annexure-II referred to in part (a) of Lok Sabha Un-Starred Question no. 1426 on “Agricultural Loan by Public and Private Sector Banks” answered on 09.02.2026 State-wise data on Agricultural Advances by Public Sector Banks (PSBs) and Private Sector Banks (Amount in Rs. crore) 2023 2024 2025 S.No. State Amount Disbursed Amount Disbursed Amount Disbursed 1 ANDAMAN & NICOBAR 277 315 468 2 ANDHRA PRADESH 127194 193317 225540 3 ARUNACHAL PRADESH 124 239 305 4 ASSAM 5598 7671 9748 5 BIHAR 30827 38202 39527 6 CHANDIGARH 3889 6065 17436 7 CHHATTISGARH 15811 19546 28575 8 DADRA&NAGAR HAVELI 191 - - 9 DAMAN & DIU 102 - - DADRA AND NAGAR HAVELI - 10 AND DAMAN AND DIU 290 348 11 DELHI 42299 26399 32123 12 GOA 1609 2082 2073 13 GUJARAT 67436 88507 95100 14 HARYANA 48832 54427 59819 15 HIMACHAL PRADESH 5317 5730 6333 16 JAMMU & KASHMIR 14254 8145 8998 17 JHARKHAND 16833 15509 10846 18 KARNATAKA 114072 148718 165662 19 KERALA 98346 124876 138618 20 LADAKH - 146 161 21 LAKSHADWEEP 17 850 51 22 MADHYA PRADESH 59406 64230 82901 23 MAHARASHTRA 244428 304336 350595 24 MANIPUR 850 485 760 25 MEGHALAYA 177 271 359 26 MIZORAM 95 143 152 27 NAGALAND 188 315 401 28 ODISHA 23332 32529 39283 29 PUDUCHERRY 3924 5164 6420 30 PUNJAB 59973 59363 64615 31 RAJASTHAN 81234 94789 97479 32 SIKKIM 445 602 605 33 TAMIL NADU 298869 376101 421566 34 TELANGANA 50934 90786 109152 35 TRIPURA 939 1184 1287 36 UTTAR PRADESH 92017 101791 99033 37 UTTARAKHAND 8454 8623 27539 38 WEST BENGAL 35003 46914 52444 Total 15,53,297 19,28,659 21,96,319 Source: RBI

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