DCM (Plg) No.1345/10.27.00/2016-17
The Chairman / Managing
Director/Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks / Regional Rural
Urban Co-operative Banks / State Co-operative Banks
Making cash available for Rabi
Crop Season – Advisory to banks
As you all are aware the Rabi
crop season has already commenced and it is imperative that farmers are
adequately supported financially to ensure unhindered farming operations.
2. It is estimated that about ?
35,000/- crore would be required by the DCCBs for sanction and disbursement
of crop loans to the farmers at the rate of ? 10,000/- crore per week.
NABARD would be utilizing its own cash credit limits up to about ? 23,000
crore to enable the DCCBs to disburse the required crop loans to PACS and
3. As many of these loans will
be disbursed in cash to facilitate farming related expenses, we advise in
this regard that banks with currency chests should ensure adequate cash
supply to the DCCBs and RRBs. Adequate cash supply should also be ensured
for rural branches of all commercial (including RRBs). Further, bank
branches located in APMCs may also be given adequate cash to facilitate
(P Vijaya Kumar)
Chief General Manager