District central cooperative banks (DCCBs) in Maharashtra will now be getting refinance for agricultural loans from the National Bank for Agriculture and Rural Development (Nabard). Refinance would be offered to all the 33 DCCBs of the state without any kind of guarantee being sought for the same from the state government.
A NABARD official confirmed the step taken by the bank.
"The state-level bankers' committee has fixed the agriculture crop loan of Rs 23,180.66 crore for 2011-12, against Rs 13,150.88 crore for 2010-11. The objective is to make available timely loan to farmers. Besides, the decision has been taken to increase the exposure of commercial banks from the present level of 30-50 per cent. The cooperative banks continue to play a major role in the disbursement of agriculture crop loan of 70 per cent in the state. As the board of directors of MSC Bank has been superseded, Nabard will give refinance directly to the DCCBs who will later provide loan to farmers," A state cooperation department official said on condition of anonymity.