New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following Statements about the Agriculture

    Infrastructure Fund (AIF) is/are True? I- It was introduced in 2020. II- The scheme provides medium to long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and financial support/credit guarantee. III- Primary Agricultural Credit Society (PACS), FPOs, Marketing Cooperative Societies, Joint Liability Groups (JLG), Self-Help Groups, etc. are beneficiaries.
    A Only I Correct Answer Incorrect Answer
    B Only II Correct Answer Incorrect Answer
    C I & III Correct Answer Incorrect Answer
    D II & III Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    The Agriculture Infrastructure Fund (AIF) was announced in May 2020 by the Government of India for farm-gate infrastructure for farmers. The scheme provides medium to long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and financial support/credit guarantee. It is meant for building processing and storage facilities, and for helping farmers, FPOs, etc. build post-harvest agriculture infrastructure and community farming assets. These facilities should help farmers get a higher price for their produce as they will be able to reduce wastage, store, process and give value addition to their products. The scheme was initially set to run for ten years from 2020 to 2029. But, it has been extended by three years till 2032-33 in July 2021. Under this, banks and financial institutions provide loans with an interest subvention of 3% per annum. The scheme also entails providing credit guarantee coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to Rs. 2 Crore. NABARD will steer this initiative in association with the Ministry of Agriculture and Farmers’ Welfare. Primary Agricultural Credit Society (PACS), FPOs, Marketing Cooperative Societies, Joint Liability Groups (JLG), Self-Help Groups, Multipurpose Cooperative Societies, Startups, agri entrepreneurs, Central/State agency or Local Body sponsored Public-Private Partnership Projects. In July 2021, the government approved extending the scheme to APMCs/State Agencies, National & State Federations of Cooperatives, Federations of Farmers Producers Organizations (FPOs) and Federations of Self Help Groups (SHGs).

    Practice Next