Reserve Bank of India
March 31, 2020
The Chairman/Managing Director/Executive Officer
All Public & Private Sector Scheduled Commercial Banks
(Excluding Regional Rural Banks and Small Finance Banks)
Short Term Crop Loans eligible for Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI) through KCC
Please refer to the circular FIDD.CO.FSD.BC.No.1785/05.02.001/2019-20, dated February 26, 2020 advising banks to ensure that all Short Term Crop Loans eligible for Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefit are extended only through KCC w.e.f. April 1, 2020 and the existing Short Term Crop Loans which are not extended through KCC shall be converted to KCC loans by March 31, 2020.
2. In view of the complete lockdown in most of the states in the country and restrictions on movement except for providing essential services, it has been decided, in consultations with Ministry of Agriculture & Farmers Welfare, that the banks may convert the existing Short Term Crop Loans including agriculture gold loans into KCC loans by June 30, 2020 with commensurate extension of Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefit against such accounts till June 30, 2020.
(Sonali Sen Gupta)
Chief General Manager