In what could be yet another showdown between State and Centre, Maharashtra Government has asked the Union Government to restore the 2% interest subvention scheme for short term crop loans in respect of District Central Cooperative banks (DCCB).
Maharashtra Chief Minister Uddhav Thackeray on Monday wrote a letter to Union Agriculture Minister Narendra Tomar saying that the discontinuing it would have an adverse impact on financial position of the cooperative banks and ‘in turn will have serious negative impact on the distribution of short term crop loan to the farmers in the State.’
“In fact, Govt. of India had made 2% interest subvention available to the Cooperative as well as Nationalised banks which enabled these lending institutions to disburse short term crop loan at concessional interest rate. The interest subvention was specially helpful to the Cooperative banks which have larger connect to the farmers,” the letter said.
