RBI panel pitches for federal body like GST Council in farm sector

Agencies
September 14, 2019

Mumbai, Sept 14: An RBI panel on Friday suggested setting up of a federal body on the lines of the GST Council to implement reforms and boost credit flow in the agriculture sector, besides pitching for direct transfer of subsidy and no farm loan waivers.

Among other recommendations, the panel said banks should develop a management information system (MIS) to flag loans sanctioned against gold as collateral in core banking solution (CBS) platform for effective monitoring of end use of funds.

In February this year, the RBI had set up the 'Internal Working Group' to understand the reasons for regional disparity and other agricultural credit related aspects and suggest workable solutions to address constraints in accessing institutional agricultural credit.

Recommending solutions to improve farm credit flow, the panel said, "Government of India (GoI) should set up a federal institution, on the lines of GST Council, having participation from both the Centre as well as the states to suggest and implement reforms in the field of agriculture."

The Goods and Services Tax (GST) Council, that consists of the finance ministers of Centre and all the states, decides on tax rates.

The panel said farm loan waivers should be "avoided" and interest subvention or subsidy given on farm loans should be replaced with Direct Benefit Transfer (DBT), which is being implemented in host of government schemes like subsidy on LPG and fertiliser.

It also stressed that banks should increase credit for allied farm activities as well and give consumption loans to farmers up to a sanctioned limit of Rs 1 lakh.

The panel further said that the Centre should push state governments to complete the digitisation process and updation of land records in a time bound manner.

That apart, state governments should give access to banks to digitised land records in order to verify land title and create charge online. In such states, banks should not insist on submission of land title documents, it added.

The panel also said state governments having a highly restrictive legal framework should be encouraged to reform their legal framework on the basis of Model Land Leasing Act proposed by NITI Aayog/ Land Licensed Cultivators' Act, 2011 of Andhra Pradesh so that formal lending to tenant farmers can improve.

On farm loan waiver, the panel said it should be "avoided" and both the Centre and state governments should undertake a "holistic review" of the agricultural policies and their implementation, as well as evaluate the effectiveness of current subsidy policies.

Among other recommendations, the panel said the interest subvention scheme should be replaced with DBT to targeted beneficiaries with an overall limit of Rs 3 lakh per individual farmer.

To curb the misuse of interest subsidy, banks should provide crop loans, eligible for interest subvention, only through Kisan Credit Card (KCC) mode.

To address regional disparity in agri-credit flow, the panel said priority sector lending (PSL) guidelines should be revisited and the National Bank for Agriculture and Rural Development (NABARD) should gradually increase the allocation of Rural Infrastructure Development Fund (RIDF) in central, eastern and north eastern states over a period of time.

Also, the corpus of RIDF should be increased and state governments should be sensitised to allocate a larger portion of their borrowing from RIDF for the purpose of absorbing funds for rural infrastructure development in their state.

To increase credit flow to allied farm activities, the panel suggested that the Centre should set separate targets for working capital and term loan towards allied activities under ground-level credit flow (GLC).

The panel also suggested easier norms for making available credit for allied activities of up to Rs 2 lakh.

Besides, banks should be allowed to give consumption loans to farmers up to a sanctioned limit of Rs 1 lakh under PSL provided banks are able to obtain collateral security and are satisfied with their repayment capacity based on the cash flows of the borrowers. However, such loans will not classify for PSL-Agri.

Stating that there is no guarantee scheme available to banks to cover the default risk of the borrowers, the panel said that the Centre in partnership with state governments should set up a credit guarantee fund for the agriculture sector on the lines of credit guarantee schemes implemented in the MSME sector.

It also stressed on the need to develop a centralised database of the Indian agriculture sector which will help in planning policy formulation.

To improve ease of credit, the limit of Rs 3 lakh for waiving collateral security by the banks in case of tie-up arrangements should be revised to Rs 5 lakh under the existing KCC guidelines subject to the condition that the tie-up arrangements are between the producers and processing units without any intermediaries.

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Agencies
July 23,2020

Ayodhya, Jul 23: All 32 accused in the Babri mosque demolition case should be invited to the "bhumi pujan" ceremony for the construction of the Ram temple here and honoured, a Hindutva outfit leader has said.

Hindu Dharma Sena president Santosh Dubey is one of the main accused in the case.

Dubey also insisted that the Shri Ram Janmabhoomi Teertha Kshetra Trust must also invite all the four Shankaracharyas to the ceremony planned on August 5.

Prime Minister Narendra Modi is also likely to attend the event.

"The office bearers of Ram Janmabhoomi Teerth Kshetra must ensure that along with all 32 accused in the Babri mosque demolition case, the families of the kar sevaks who gave their lives in the Ram Temple movement must also be invited to the 'bhumi pujan' ceremony and must be honoured there," Dubey told PTI.

The top court verdict in favour of the Ram temple at the site would not have been possible had the Babri mosque not been demolished, he said.

"If the Trust does not invite the kar sevaks, it will a display of ego and arrogance. Without inviting the kar sevaks who have been accused in Babri mosque demolition and the families of the slain kar sevaks, the 'bhumi pujan' will remain incomplete," Dubey added.

A special CBI court in Lucknow is recording the statements of the 32 Babri demolition accused under section 313 of the CrPC, which enables them to plead their innocence, if they so want.

The court is conducting day-to-day hearings to complete the trial by August 31 as directed by the Supreme Court.

The mosque in Ayodhya was demolished on December 6, 1992 by 'kar sevaks' who claimed that an ancient Ram temple had stood on the same site. Former deputy prime minister L K Advani and BJP leader Murli Manohar Joshi were leading the Ram temple movement at that time.

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News Network
March 3,2020

Chennai, Mar 3: The Madras High Court has ruled that if a working woman gives birth to a child in the second delivery after twins in the first, she is not entitled to maternity benefits as it should be treated as third child.

"As per existing rules, a woman can avail such benefits only for her first two deliveries. Even otherwise it is debatable as to whether the delivery is not a second delivery but a third one, in as much as ordinarily when twins are born they are delivered one after another, and their age and their inter-se elderly status is also determined by virtue of the gap of time between their arrivals, which amounts to two deliveries and not one simultaneous act," the court said.

The first bench, comprising Chief Justice A P Sahi and Justice Subramonium Prasad stated this while allowing the appeal from Ministry of Home Affairs.

It set aside the order June 18 2019 order of a single Judge, who extended 180 days of maternity leave and other benefits to a woman member of the Central Industrial Security Force (CISF) under the rules governing the Tamil Nadu government servants.

The issue pertains to an appeal moved by the ministry, which contended that the leave claim is by a member of CISF to whom the maternity rules of Tamil Nadu would not apply.

She would be covered by the maternity benefits as provided under the Central Civil Services (Leave) Rules, the ministry said.

When the appeal came up for hearing, the bench said it found that a second delivery, which, in the present case, resulted in a third child, cannot be interpreted so as to add to the mathematical precision that is defined in the rules.

The admissibility of benefits would be limited if the claimant has not more than two children, the bench said "This fact therefore changes the entire nature of the relief which is sought for by the woman petitioner, which aspect has been completely overlooked by the single judge", the bench said.

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News Network
March 23,2020

Thiruvananthapuram, Mar 23: Amid a spurt in coronavirus cases, Kerala chief minister Pinarayi Vijayan has asked the Centre to give the states authority to give clearances for manufacturing masks, gloves and sanitisers.

In a letter addressed to prime minister Narendra Modi, Vijayan said during the crisis, masks and sanitisers are needed in large numbers.

"As an interim, states must be given authority to give clearances of manufacturing of items related to medical devices, sanitisers, chemicals, etc. which are needed for fighting Covid-19," Vijayan said in the letter.

He also sought permission for the state home department to use drones for the relevant applications related to Covid-19.

"In China and elsewhere in the world, drones have been used extensively in minimising human contact, disinfection, etc. Unfortunately, with the current laws pertaining to the use of drones, none of these is possible in India," the chief minister said.

He also sought permission to access and use facilities available with all central institutions and research labs operating in the state.

The chief minister shared the letter on his Twitter handle.

With 15 new positive cases of Covid-19, the total number of infected persons in Kerala had gone up to 67, including the three who were discharged after recovery last month.

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