Lok Sabha Question No. 216 (STARRED), answered on 2016-03-11
Subject: Bank Accounts for Farmers
Ministry: FINANCE
Asked by: SUNIL KUMAR SINGH, SADASHIV KISAN LOKHANDE

## Government of India Ministry of Finance Department of Financial Services

LOK SABHA Starred Question No. *216

To be answered on11March, 2016/Phalguna21, 1937 (Saka)

## Bank Accounts for Farmers

*216. SHRI SUNIL KUMAR SINGH;

SHRI SADASHIV LOKHANDE

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  recent  study/report  of  the  National  Bank  for  Agriculture  and  Rural Development  (NABARD)  has  indicated  that  nearly  52  per  cent  of  farmers  of  the country do not have a bank account, if so, the details thereof and the reaction of the Government thereon;
- (b) whether the share of the agricultural loan to the North Eastern States is less than ten per cent, if so, the details thereof;

(c)  whether  the  Government  has  any  proposal  to  lower  the  interest  rate  on  loans provided to poor farmers belonging to Scheduled Castes and Scheduled Tribes and Other Backward Classes, if so, the details thereof; and

- (d) the steps taken/being taken by the Government to provide easy loans to farmers in this regard?

## Answer

The Finance Minister (Shri ArunJaitley)

- (a) to (d):-  A Statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (d) of Lok Sabha Starred Question No.  *216  to  be  answered  on  11 th March,  2016  regarding  Bank  Accounts  for Farmers (a):  No  Madam.  However,  the  National  Sample  Survey  Organisation  (NSSO) conducted  Situation  Assessment  Survey  (SAS)  of  Agricultural  Households  during NSS  70 th   round  for  the  reference  period  of  the  agricultural  year  July  2012-  June 2013, which estimated that approximately 52 per cent of agricultural households are indebted to either institutional or non-institutional sources. (b): Yes Madam. Though agricultural credit in India has registered consistent growth, regional variation in distribution of the credit remains, offtake of agriculture credit is hampered  due  to  various  reasons  including  topography,sparse  settlements  of population, lower level of commercialization, lack of irrigation facilities, infrastructural bottlenecks, more than one fifth of land being fallow, and weak cooperatives. (c)&  (d):  Various  initiatives  have  been  taken  to  reduce  debt  burden  on  farmers  as well  as  to  provide  easy  and  hassle-free  loan  to  farmers,  including  short  term  crop loans at a low rate of 7% p.a. for which 2% subvention is given. An additional 3% subvention for prompt repayment is also given by the Central Government so that the effective rate of interest is reduced to 4%. In addition, targets are given to banks for  agriculture credit under Priority Sector Lending (PSL) Guidelines, ATM enabled Kisan Credit Cards have been issued, Joint Liability Groups (JLGs) to bring small, marginal, tenant farmers, oral lessees, etc. into the fold of institutional  credit  have been  promoted,  and  an  automatic  mechanism  put  in  place  for  initiating  relief measures in areas affected by natural calamities.

*******