New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

      As per the RBI guidelines for Short Term Loans for

    Agriculture and Allied Activities availed through Kisan Credit Card (KCC), Iinterest subvention and prompt repayment incentive benefits on short term crop loans and short term loans for allied activities will be available on an overall limit of ………………..
    A 2 lakhs per annum Correct Answer Incorrect Answer
    B 3 lakhs per annum Correct Answer Incorrect Answer
    C 4 lakhs per annum Correct Answer Incorrect Answer
    D 5 lakhs per annum Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Interest subvention and prompt repayment incentive benefits on short term crop loans and short term loans for allied activities will be available on an overall limit of ₹3 lakh per annum subject to a maximum sub-limit of ₹2 lakh per farmer in respect of those farmers involved only in activities related to animal husbandry, dairy, fisheries, beekeeping, etc. In order to discourage distress sales by farmers and to encourage them to store their produce in warehouses, the benefit of interest subvention under KCC will be available to small and marginal farmers for a further period of up to six months post the harvest of the crop against negotiable warehouse receipts on the produce stored in warehouses accredited with Warehousing Development Regulatory Authority (WDRA), at the same rate as applicable to the Agri. loan

    Practice Next

    Relevant for Exams: