Aadhaar must for subsidised farm loans: RBI
August 18th, 2017
To ensure hassle-free benefits to farmers under Interest Subvention Scheme, the Reserve Bank of India has advised banks to make Aadhaar linkage mandatory for availing short-term crop loans up to Rs 3 lakh in 2017-18. In order to provide short-term crop loans to farmers at an interest rate of 7 percent during the year 2017-18, the RBI said it has been decided to offer interest subvention of 2 percent to lending institutions, public sector banks, private sector commercial banks on use of their own resources. Banks have been asked to include land details, even after providing gold as a security, for the loan to avoid multiple loaning and to ensure that only genuine farmers avail of concessional crop loans through the mechanism of gold loans.