- “The High-level Committee on Agricultural Credit through Commercial Banks” (RV Gupta, 1998)
- “Task Force to Study the Functions of Cooperative Credit System and to Suggest Measures for its Strengthening” (Jagdish Capoor, 1999) -> adoption of a Model Cooperative Act, settin
g up of a Coop rehab and development fund at NABARD et Mutual Assistance Fund at State Level
- “Expert Committee on Rural Credit” (V.S. Vyas, 2001) -> restoration of health of Primary Agricultural Credit Societies (PACs) by scrapping the cadre system, selective delayering of cooperatives credit structure and integration of short and long-term structures.
- “The Working Group to Suggest Amendments in the Regional Rural Banks Act, 1976” (M.V.S. Chalapathi Rao, 2002) -> suggesting diversification of the business of RRBs, recommended introduction of capital adequacy norms for RRBs in a phased manner, along with the RRB-specific amount of equity based on the risk-weighted assets ratio
- Deregulation of interest rates of co-operatives and RRBs
- Deregulation of lending rates of commercial banks for loans above Rs. 2 lakh
- Recapitalisation of select RRBs
- Introduction of prudential accounting norms and provisioning requirements for all rural credit agencies
- Increased refinance support from RBI and capital contribution to NABARD
- Constitution of the Rural Infrastructure Development Fund (RIDF) in NABARD for infrastructure projects
- Introduction of Kissan Credit Card (KCC) and stipulation of interest rate not exceeding 9 per cent for crop loans up to Rs.50,000 extended by the public sector banks.
|Photo Credit: Reserve Bank of India|