Now the agriculture bank will also work like a normal cooperative bank

- Antenna - Vivek Mehta

- Borrowers will get the benefit of subsidies under all central government schemes: Agriculture Bank has demanded 5 percent interest subsidy even on medium-long term loans.

It is being planned to license the agricultural bank which has more than 176 branches in 17 districts of Gujarat and start normal banking from it. At present, agriculture does not have a bank license. They are allowed to lend and take deposits under special provisions. But she cannot open a current account or a savings account. But the central government is trying to expand the spectrum of co-operative banks to get them licensed and start normal banking. After getting the license he can open current account and saving account. Also can do short term financing. Necessary changes in the law have also been made for this. Not only Gujarat, the government is planning to make eligible agricultural banks operate like cooperative banks in all the states of the country. .

A representation has been made in this regard to the central government. The central government has given its in-principle approval. The Reserve Bank has constituted a committee of experts to study it. The committee has visited the Agriculture Bank of Gujarat. The committee has also visited the agricultural banks of states other than Gujarat and will submit its report to the Reserve Bank. The state will then decide on granting licenses to agricultural banks. In due course of time all agricultural banks will be licensed and all operations like co-operative banks will be done from them. Now agriculture banks cannot provide short term loans. Also, gold cannot give loans. After getting banking license they will be able to provide short term crop loans. It will also be able to launch new products for financing. For this, Section 116 of the Cooperative Societies Act, 1961 is being amended, says Dollar Kotecha, the current Chairman of Agriculture Bank.

If loans are given to agricultural companies for crops, they will also get the benefit of the interest waiver-interest subsidy scheme from the central government. At present, farmers who have taken loans from agriculture banks cannot get the benefit of interest waiver if they apply on the I-Kisan portal. Their applications are not uploaded at all. Therefore those who irrigate with drip irrigation or fountain-sprinkler system do not get the benefit of interest waiver. There has also been a demand to include the name of the bank on the i-kisan portal. The system for uploading loan applications on the i-kisan portal does not even have the name of the agriculture bank. Therefore, the applications of loan borrowers through Khatiya Bank are not accepted.

Giving more information in this regard, he said that if banking license is given to Khati Bank, the benefits available under all the schemes announced by the central government for farmers including government institutions will also be available to the members of Khati Bank. As a result, lending to farmers in rural areas will create competition against public sector or private sector banks. He said that if he is given a banking license, he will also get refinance-refinance from NABARD against the loans he has given to the MPs. As a result, the scope of the bank's operations can be expanded. It may also open the doors of getting a special package from the central government for the arrears of the arrears.