Long Term Rural Credit Fund; to Provide Support to Cooperative Banks and Rrbs with an Initial Corpus of ₹ 5,000 Crore

In pursuance of the Budget Announcement 2014-15, a new Fund namely “Long Term Rural Credit Fund” has been set up in National Bank for Agriculture & Rural Development (NABARD) for providing refinance support to Cooperative Banks and Regional Rural Banks, with an initial corpus of ₹ 5,000 crore, contributed out of shortfall in achievement of Priority Sector Lending (PSL) targets by Scheduled Commercial Banks. The main objective of the Fund is to boost capital formation in agriculture and rural economy.

This information was given by the Minister of State for Finance, Shri Jayant Sinha in written reply to a question in Lok Sabha.