Provision of Short-Term (ST) refinance by NABARD to State Cooperative Banks for financing Seasonal Agricultural Operations (SAO) - Policy for F. Y. 2020-21

Please refer to our Circular No.226 /DoR-61/2019 dated 24 July 2019 communicating NABARD's policy for F. Y. 2019-20 on provision of refinance under Sec. 21(1) of NABARD Act, 1981 to State Cooperative Banks (StCBs) in respect of eligible District Central Cooperative Banks (DCCBs) for financing Seasonal Agricultural Operations. We, now advise that the ST (SAO) Policy for F. Y. 2020-21 has been finalized and the details thereof are enumerated in the
Annexure I.
2.  The rate of interest on NABARD refinance to StCBs will be 4.5% p.a. (subject to change, if any, by Govt. of India) if the Short-Term Cooperative Credit structure in the State together with their own involvement provide crop loan up to Rs.3.00 lakh per borrower / farmer at 7% p.a. or less. The Bank is required to furnish an undertaking to this effect as per Annexure II.  The StCB/DCCBs are also required to report the monthly progress with regard to KCCs on the ENSURE portal.
3. Affiliated DCCBs may be advised to ensure implementation of KCC scheme by issuance of RuPay Card to the borrowing members.
4. Refinance allocation for your bank for F. Y. 2020-21 will be communicated to you separately by our Regional Office (RO). You may submit an application for sanction of consolidated credit limit on behalf of all the eligible DCCBs in a 3 tier structure and the StCB in case of a 2 tier structure along with the first drawal, in the prescribed proforma to NABARD RO.
5. Please acknowledge receipt of this circular to our Regional Office.