In agriculture, credit flow of Rs. 3,25,000 crore targeted for 2009-10

New Delhi, July 6 (ANI): Finance Minister Pranab Mukherjee on Monday said that the target for the agriculture credit flow for the year 2009-10 is being set at Rs. 3,25,000 crore.

Presenting the budget for 2009-10, Mukherjee said: “Agricuture credit flow for the year 2008-09 was Rs. 2,87,000 crore.”

To achieve this, he proposed to continue the interest subvention scheme for short-term crop loans to farmers for loans up to Rs. 3 lakh per farmer at the interest rate of seven per cent per annum.

The Minister also announced an additional subvention of one per cent as an incentive to those farmers who pay their short-term crop loans on schedule.

“The interest rate for these farmers could come down to six per cent per annum. An additional budget provision of Rs. 411 crore over interim budget has been earmarked for the purpose,” he added.

He also announced the extension in the time given to the farmers having more than two hectares of land to pay 75 per cent of their overdues under Debt Waiver and Debt Relief Scheme extended from June 30 to December 31.

“This extension of six months has been given in the wake of delay in the arrival of monsoon,” he added.

Besides, the Minister proposed to set up a Task Force to examine the issue of debt taken by a large number of farmers in some regions of Maharashtra from the private moneylenders.

“As these farmers were not covered by the Agriculture Debt Waiver and Debt Relief Scheme (2008), this matter needs to be examined in greater detail,” he added. (ANI)

Telecom, insurance companies allowed to access credit data

In line with the stipulations of the credit flow-regulating Credit Information Companies Act (CICA), 2005, the Credit Information Bureau India Ltd – CIBIL – has been granted ‘in-principle approval’ for Certificate of Registration by the Reserve Bank of India.

The certification allows companies in the telecommunications and insurance sectors to access credit data. Previously, the credit data could be accessed and shared by financial institutions such as banks and NBFCs.

While the CICA does not make it mandatory for the telecom and insurance firms to contribute data, they would be allowed to access data from CIBIL, which presently has more than 135-million accounts directory, thanks to contributions from almost 160 financial and non-banking institutions. After receiving the final registration and operational guidelines, the telecom and insurance companies can collect information from more sources.

The CIBIL functioning includes providing a credit score of up to 900, depending upon the borrower’s liabilities and past payment records, and a deferred installment payment affects the credit score.

According to The Times of India, Terry McCafferty, CIBIL’s Chief Operating Officer, talking about the recent ‘in-principle’ approval said: “The approval gives us the right to continue our operations and allows telecom companies and insurers to access the CIBIL database. We need to develop and enable our systems so that all this can be put to effect soon.”

US interest rates expected to remain stable

Washington – The was widely expected to keep interest rates steady in the range of zero to 0.25 per cent when it releases its periodic decision on Wednesday.

The Federal Open Market Committee, which began meeting on Tuesday, is to announce its decision at 1815 GMT Wednesday.

The central bank has been working to revive borrowing and stabilize the financial system amid a serious ongoing recession in the United States, which has cascaded into foreign markets.

The bank could also expand its purchases of asset-backed securities and treasury bills with an ultimate goal of freeing up more credit lines.

As it wrestles with the expanding financial crisis, which has slowed credit flow to a near stand still, the Fed in December dropped interest rates to a historic low of just over zero per cent.

Over the weekend, Fed chief Ben Bernanke said that the recession could end this year if the banking and financial systems can be stabilized.

“We’ll see recovery beginning next year. And it will pick up steam over time,” he told news programme 60 Minutes. dpa

Mukherjee to meet bank CEOs today

New Delhi, Feb. 2 (ANI): External Affairs Minister Pranab Mukherjee will meet the public sector bank CEOs here today to evaluate third quarter performance, loan disbursal and the impact of the stimulus packages announced by the government.

Mukherjee is currently handling the finance portfolio. The meeting comes in the wake of the third quarterly review of monetary policy by the Reserve Bank of India (RBI).

The RBI had noted that most banks have reduced lending and deposit rates to some extent, but some banks have not cut them so far.

Mukherjee is expected to ask banks to relieve the interest rates to boost the demand.

“The agenda of the meeting includes review of credit flow and status of implementation of the packages announced for stimulating the economy,” a Finance Ministry statement has said.

The government and the PSU banks have taken many steps to raise the demands to boost the economy.

They include reducing interest rates for housing loans of up to 20 lakh rupees and opening the refinance window for commercial banks.

The RBI had also cut the short-term lending (repo) rate to deal with the slowdown in the economy. (ANI)

Mukherjee to meet Bank CEOs on Monday

New Delhi, Feb. 1 (ANI): External Affairs Minister Pranab Mukherjee is scheduled to meet the public sector bank CEOs on Monday to evaluate third quarter performance, loan disbursal and the impact of the stimulus packages announced by the government.

Mukherjee is currently handling the finance portfolio. The meeting comes in the wake of the third quarterly review of monetary policy by the Reserve Bank of India.

The RBI had noted that most banks have reduced lending and deposit rates to some extent, but some banks have not cut them so far.

Mukherjee is expected to ask banks to relieve the interest rates to boost the demand.

“The agenda of the meeting includes review of credit flow and status of implementation of the packages announced for stimulating the economy,” a Finance Ministry statement has said

The government and the PSU banks have taken many steps to raise the demands to boost the economy.

They include reducing interest rates for housing loans of up to 20 lakh rupees and opening the refinance window for commercial banks.

The RBI had also cut the short-term lending (repo) rate to deal with the slowdown in the economy. (ANI)

Mukherjee to meet Bank CEOs on Monday

New Delhi, Feb. 1 (ANI): External Affairs Minister Pranab Mukherjee is scheduled to meet the public sector bank CEOs on Monday to evaluate third quarter performance, loan disbursal and the impact of the stimulus packages announced by the government.

Mukherjee is currently handling the finance portfolio. The meeting comes in the wake of the third quarterly review of monetary policy by the Reserve Bank of India.

The RBI had noted that most banks have reduced lending and deposit rates to some extent, but some banks have not cut them so far.

Mukherjee is expected to ask banks to relieve the interest rates to boost the demand.

“The agenda of the meeting includes review of credit flow and status of implementation of the packages announced for stimulating the economy,” a Finance Ministry statement has said

The government and the PSU banks have taken many steps to raise the demands to boost the economy.

They include reducing interest rates for housing loans of up to 20 lakh rupees and opening the refinance window for commercial banks.

The RBI had also cut the short-term lending (repo) rate to deal with the slowdown in the economy. (ANI)

Mukherjee to meet Bank CEOs on Monday

New Delhi, Feb. 1 (ANI): External Affairs Minister Pranab Mukherjee is scheduled to meet the public sector bank CEOs on Monday to evaluate third quarter performance, loan disbursal and the impact of the stimulus packages announced by the government.

Mukherjee is currently handling the finance portfolio. The meeting comes in the wake of the third quarterly review of monetary policy by the Reserve Bank of India.

The RBI had noted that most banks have reduced lending and deposit rates to some extent, but some banks have not cut them so far.

Mukherjee is expected to ask banks to relieve the interest rates to boost the demand.

“The agenda of the meeting includes review of credit flow and status of implementation of the packages announced for stimulating the economy,” a Finance Ministry statement has said

The government and the PSU banks have taken many steps to raise the demands to boost the economy.

They include reducing interest rates for housing loans of up to 20 lakh rupees and opening the refinance window for commercial banks.

The RBI had also cut the short-term lending (repo) rate to deal with the slowdown in the economy. (ANI)