**Summary:**
RBI Circular RBI201920202 FIDD.CO.FSD.BC.No.2305.02.001201920, dated March 31, 2020, addresses all Public and Private Sector Scheduled Commercial Banks (excluding Regional Rural Banks and Small Finance Banks) regarding Short Term Crop Loans eligible for the Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI) through Kisan Credit Cards (KCC). This circular modifies the previous directive FIDD.CO.FSD.BC.No.178505.02.001201920, dated February 26, 2020, which mandated that all eligible Short Term Crop Loans for ISS and PRI be extended exclusively through KCCs, effective April 1, 2020, and that existing non-KCC Short Term Crop Loans be converted to KCC loans by March 31, 2020. Due to the nationwide lockdown and movement restrictions, the deadline for converting existing Short Term Crop Loans (including agriculture gold loans) into KCC loans is extended to June 30, 2020. The Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefits will also be extended to these accounts until June 30, 2020. Contact information for further inquiries: Sonali Sen Gupta, Chief General Manager.
Key Entities Referenced
Interest Subvention Scheme: A scheme (ISS) providing interest subvention on short-term crop loans.
Prompt Repayment Incentive: An incentive (PRI) for prompt repayment of short-term crop loans.
KCC: Likely refers to Kisan Credit Card, a credit facility for farmers.
Short Term Crop Loans: Loans provided to farmers for short-term crop cultivation.
Regional Rural Banks: Scheduled commercial banks operating at a regional level in India.
Small Finance Banks: Financial institutions providing basic banking services to underserved populations.
Ministry of Agriculture Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
June 30, 2020: Date until which existing Short Term Crop Loans can be converted to KCC loans with extension of Interest Subvention IS and Prompt Repayment Incentive PRI benefit
RBI/2019-20/202
FIDD.CO.FSD.BC.No.23/05.02.001/2019-20 March 31, 2020
The Chairman/Managing Director/Executive Officer
All Public & Private Sector Scheduled Commercial Banks
(Excluding Regional Rural Banks and Small Finance Banks)
Madam/Sir,
Short Term Crop Loans eligible for Interest Subvention Scheme (ISS) and Prompt
Repayment Incentive (PRI) through KCC
Please refer to the circular FIDD.CO.FSD.BC.No.1785/05.02.001/2019-20, dated
February 26, 2020 advising banks to ensure that all Short Term Crop Loans eligible for
Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefit are extended only
through KCC w.e.f. April 1, 2020 and the existing Short Term Crop Loans which are not
extended through KCC shall be converted to KCC loans by March 31, 2020.
2. In view of the complete lockdown in most of the states in the country and restrictions
on movement except for providing essential services, it has been decided, in
consultations with Ministry of Agriculture & Farmers Welfare, that the banks may convert
the existing Short Term Crop Loans including agriculture gold loans into KCC loans by
June 30, 2020 with commensurate extension of Interest Subvention (IS) and Prompt
Repayment Incentive (PRI) benefit against such accounts till June 30, 2020.
Yours faithfully,
(Sonali Sen Gupta)
Chief General Manager