National Bank for Agriculture and Rural Development (NABARD) is an apex development financial institution that often extends financial help to banks operating in rural India so that the farmers could meet their credit needs. The institution has recently announced that it has infused Rs 1.46 Lakh crores in the rural banking system during the current fiscal.
NABARD has announced that 66,397 crore rupees have been provided in short-term credit and 6,704 crore rupees in long term credit have been given to rural cooperative banks. In the kitties of regional rural banks, an amount of Rs 14,141 crore in short term credit and Rs 8,417 crore in the long term credit have been given. Furthermore, other banks such as small finance banks have obtained long-term refinance of Rs 37,895 crore.
Talking about short-term refinance and long term refinances, both the finances are used for different purposes. Short-term refinance is considered as production credit and long-term refinance is aimed at serving farmers and professionals in the dairy, farm mechanization, poultry, irrigation, and other non-farm sectors.
