Reimbursement of Interest Subvention and Prompt Repayment Incentive for short term crop loans only through KCC a/cs - regarding
Please refer to our circular Ref.No. NB.DoR-Policy/2384/IS-1/2019-20 dated 30 December 2019 on the above subject.
2. As Banks have expressed difficulty in implementing the directions of converting agriculture gold loan accounts/ short term agriculture credit to KCC accounts from 01 October 2019, and the banks need transition time, DAC&FW, MoA&FW, GoI vide their Office Memorandum No. F. 1-20/2018-Credit-I, dated 23 January 2020 (copy enclosed), has advised that effective date for making KCC mandatory for claiming Interest Subvention and PRI shall be 01 April 2020.
3. In view of this, banks are advised that Short Term Crop Loans extended through KCC will only be eligible for Interest Subvention (IS) and Prompt Repayment Incentive (PRI) with effect from 01 April 2020.
4. Banks may accordingly initiate suitable action.