The National Bank for Agriculture and Rural Development (NABARD) on September 25, 2024, issued a circular regarding Long-term refinance for investment credit for agriculture - Long Term Rural Credit Fund 2024-25 (LTRCF) – State Cooperative Banks(StCB).
The following has been stated: -
•The Government of India has created the Long Term Rural Credit Fund (LTRCF) with NABARD to enhance the refinancing operations of Rural Cooperative Banks and Regional Rural Banks to meet the long-term investment credit needs in agriculture. The operational guidelines for LTRCF for the financial year 2024-25 are enclosed in the document below.
•The interest rate on refinancing from NABARD will be 5.50% p.a. (with quarterly rests), subject to revision by NABARD from time to time is encouraged to pass on the benefit of low-cost funds to the ultimate borrower.
•The bank needs to use the concessional funds under LTRCF for creating assets under Agriculture for eligible purposes.
•It must be ensured that 25% of the corpus of the fund is utilized in identified districts where the credit flow is comparatively low.
[Circular No. 186/ DoR - 35 / 2024]
