CURRENT UPDATE : NABARD REDUCES REFINANCE RATE FOR BANKS

NABARD REDUCES REFINANCE RATE FOR BANKS

National Bank for Agriculture and Rural Development (NABARD) has reduced refinance rate for banks and other lending agencies by 0.20% to promote rural credit and rural infrastructure. The revised rate of interest on refinance for a period of five years for commercial, state cooperative, regional rural and primary urban cooperative banks will be 9.70 per cent, down from 9.90 per cent.

NABARD said in a statement, the new rates are effective from 7th of this month. It further said, banks drawing refinance of 500 crore rupees and more in a single drawl will be allowed further reduction of 0.10 per cent, making the effective rate 9.60 per cent. However, for State Cooperative Agriculture and Rural Development Banks (SCRDBs), a 10 basis point reduction is allowed for a single drawl of 200 crore rupees and above.

NABARD said, these measures are expected to give a boost to banks for extending investment credit and creation of much-needed warehousing infrastructure for agricultural commodities in the country.