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NABARD interest rates reduced

Presenting Budget Y2001-02, he said the corpus of Rural Infrastructure Development Fund will be increased from Rs 45 billion to Rs 50 billion next year.

He said banks will be asked to accelerate Kisan Credit Cards cover to all eligible agricultural farmers within the next three years. The premium burden on this account will be shared by the card issuing institutions, he said.

NABARD and SIDBI have been asked to link one lakh self-help groups during the current year. A micro finance development fund has also been set up in NABARD with contribution of Rs 400 million each by NABARD and RBI, Sinha said.

He said NABARD had mobilised over Rs 10 billion at lower than normal interest rates after it issued capital gains tax exemption bonds last year. This had reduced its cost of funds, the minister said adding this tax exemption would continue.

He said the resources from the Watershed Development Fund set up in NABARD would be used to promote peoples' participation and also enable water users' associations to implement, operate and maintain irrigation schemes.

Budget 2001
Money

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