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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News Network
February 6,2020

Beijing, Feb 6: The number of confirmed fatalities from China's coronavirus outbreak rose to at least 560, after authorities in hardest-hit Hubei province reported 70 new deaths on February 6.

In its daily update, the health commission in Hubei also confirmed the number of confirmed infections in the outbreak has reached 28,018 nationwide with 3,694 new cases reported.

The epidemic, which has spiralled into a global health emergency, is believed to have emerged in December from a market that sold wild game in Hubei's capital Wuhan.

Hu Lishan, an official in Wuhan, warned Wednesday that despite building a hospital from scratch and converting public buildings to accommodate thousands of extra patients, there was still a "severe" lack of beds in the region.

There was also a shortage of "equipment and materials," he told reporters, adding that officials were looking to convert other hotels and schools in the city into treatment centres.

Authorities in several other cities in China have placed restrictions on the number of people allowed to leave their homes.

Global concerns have also risen about the virus, with cases confirmed in more than 20 countries.

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News Network
January 10,2020

Washington, Jan 10: It is “highly likely” that Iran shot down the civilian Ukrainian jetliner that crashed near Tehran late Tuesday, killing all 176 people on board, U.S., Canadian and British officials declared Thursday.

They said the fiery missile strike could well have been a mistake amid rocket launches and high tension throughout the region.

The crash came just a few hours after Iran launched a ballistic attack against Iraqi military bases housing U.S. troops in its violent confrontation with Washington over the U.S. drone strike that killed an Iranian Revolutionary Guard general. The airliner could have been mistaken for a threat, said four U.S. officials, speaking on condition of anonymity to discuss sensitive intelligence.

Canadian prime minister Justin Trudeau, whose country lost at least 63 citizens in the downing, said in Toronto: “We have intelligence from multiple sources including our allies and our own intelligence. The evidence indicates that the plane was shot down by an Iranian surface-to-air missile.”

Likewise, U.K. prime Minister Boris Johnson and Australian prime minister Scott Morrison offered similar statements. Morrison also said it appeared to be a mistake. “All of the intelligence as presented to us today does not suggest an intentional act,” he said.

The assessment that 176 people were killed as collateral damage in the Iranian-U.S. conflict cast a new pall over what had at first appeared to be a relatively calm aftermath following the U.S. military operation that killed Iranian Gen. Qassem Soleimani.

At the White House, U.S. president Donald Trump suggested he believed Iran was responsible for the shootdown and dismissed Iran's initial claim that it was a mechanical issue with the plane.

“Somebody could have made a mistake on the other side.” Trump said, noting the plane was flying in a “pretty rough neighborhood."

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News Network
May 7,2020

Dubai/Abu Dhabi, May 7: A group passengers who are scheduled to fly to Kozhikode on the first COVID-19 Indian repatriation flight have begun streaming in to Terminal 2 at Dubai International Airport.

Wearing masks and gloves, the passengers are now waiting for the medical screening and check-in services to begin.

Airport officials gave entry to the departure terminal only to passengers with tickets.

Naif resident Mahamood P.P, 60, was among the first to reach as he was not informed about the change in the flight schedule, he told Gulf News.

“I reached here at 9.30am as I didn’t get any information about the 2.10pm flight getting rescheduled to the evening,” he said.

Suffering from a heart disease, Mahmood, who works as a juice maker at a juice shop near Naif Police station, said he stepped out of his room for the first time in two months.

“As there were many cases in Naif, I never went out because of my health condition. Since I was not in contact with anyone else other than my roommates who also never went out, I didn’t go for the COVID screening also. I was worried that I might be exposed to infection while waiting for the tests,” he said.

He thanked the Indian Consulate for giving him priority to fly home. “I need to go for my heart checkup. So I wanted to fly home as soon as possible.”

However, he said his son, a civil engineer who came here searching for a job, is not flying back though he is on a visit visa.

“Since the UAE government has allowed people on visit visa to stay here till December, he has decided to try his luck in getting a job,” said Mahamood.

Sneha Thomas, who is eight months pregnant, was also among the first to arrive at the airport.

Her husband Somi Jose came to drop her.

Thomas is among 11 pregnant women flying on the Dubai-Kozhikode flight.

Sharjah resident for 30 years, Mohammed Ali Yaseen, who is also the secretary of the Kerala Muslim Cultural Centre in Sharjah, said he is flying home as the restaurant he was running had to be closed due to a demolition plan of the building.

“Three months ago I got the notice to vacate the building and I had to close the restaurant. I was looking for another shop. But then the coronavirus hit. Now there is no point in me opening me a new shop as those who are already operational are not getting any business.”

He said he decided to drop the plan and go home for now. “My visa and license are still valid. I will try to come back when this pandemic ends and things are better.”

Meanwhile, at the Au Dhabi International Airport, families with kids were given priority to proceed towrards check-in. at terminal 3. The passengers coming in right now were mostly women who were on a visit visa. Pregnant women and the elderly too were given priority.

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