Annual Plan 2005-06 Background Note 2005-06

Abstract

Recapitalise cooperatives with interim assistance of Rs. 500 crs. pending receipt of the recommendations of the Vaidyanathan Committee. Encourage NABARD and RBI to support rural credit through refinance of DCCBs even if they have not met the requirements of Section 11(1) of the Banking Regulation Act in the interim period by raising the reschedulement limit of NABARD for short term loans to Rs. 250 crs. and the refinance limit to Rs. 1800 crs. Continue Central Plan assistance for the agricultural credit stabilization fund of SCBs and for meeting deficits in the nonoverdue cover of DCCBs.