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Sep 02, 2015
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Provide subsidy to farmers directly, RBI tells govt
Expressing concern over distortion of the credit culture in agriculture, the Reserve Bank of India (RBI) has written to the government, urging it not to give subsidy for the sector to banks and, instead, provide it directly to farmers.The move comes amid rising non-performing assets (NPA) pertaining to the sector. Between 2010 and this year, these rose fourfold - from Rs 10,400 crore to Rs 39,100 crore. Gross NPAs, as percentage of total agricultural loans, increased to 4.7 per cent as of March this year, compared with 2.2 per cent five years ago.
Source -
http://www.business-standard.com
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