Reserve Bank has stated that interest subsidy scheme on short-term crop loans of up to.....lakh rupees will be implemented through the Direct Benefit Transfer (DBT) mode from the current financial year.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Reserve Bank has stated that interest subsidy scheme on short-term crop loans of up to____lakh rupees will be implemented through the Direct Benefit Transfer (DBT) mode from the current financial year.

A	nine lakh
B	five lakh
C	six lakh
D	three lakh

Explanation:

Detailed explanation-1: -A loan granted for short duration crops will be treated as NPA if the instalment of the principal or interest thereon remains unpaid for two crop seasons beyond the due date.

Detailed explanation-2: -Definition: Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.

Detailed explanation-3: -Interest Subvention would be available only on credit requirement for cultivation of crops and post-harvest loan components under ST limit of KCC. Limit towards household / consumption requirement / maintenance expenses of farm assets, term loan etc. will be outside the purview of the Interest Subvention Scheme.

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