Announcing the new rates, Dr. Harsh Kumar Bhanwala, Chairman, NABARD said that rates of refinance will now be 9.50% for five years and above and 9.70% for 3-5 years period, Banks availing more than Rs.500 crore in a single drawl will further be incentivised by 10 bps. (Read in Hindi: नाबार्ड ने पुनर्वित्‍त की दरें घटाईं, निवेश ऋण पर जोर)

To combat food inflation, efficient agricultural technologies get a further incentive of 50 basis points.

In addition, NABARD shall further give 50 basis points reduction, for innovative agricultural activities which enhance production and productivity. These activities among others include; production under controlled conditions like poly houses with water saving drip and fertigation facilities, precision farming, post-harvest management, etc. The list includes 12 such innovative farm practices to enhance fruit and vegetable production. This initiative is aimed at combating the food inflation by addressing the supply side constraint.

NABARD will also extend the 50 basis points rebate for supporting single purpose under area development schemes, mainly to benefit small and marginal farmers.

Dr. Bhanwala said that this initiative will incentivise the Cooperative Banks, RRBs and Commercial Banks in reversing the decelerating trend of investment credit and will aid in enhancing capital formation in agriculture.