Current Affairs

RBI suggest Federal body like GST council for Farming Sector

Current context: An RBI panel has suggested to set up a federal body like a GST council for providing credit flows to the agriculture sector.
 RBI suggest Federal body like GST council for Farming Sector
  • To boost the Credit flow in agriculture RBI recommended the following measures:
    1. Interest subvention/subsidy to be replaced with Direct transfer of subsidies or DBT (Direct Benefit Transfer).
    2. No farm waivers
    3. A management information system (MIS) to be developed by banks to flag loans sanctioned against gold as collateral.
    4. Set up a federal institution like GST council with participation from centre and states.
    5. Banks should increase credit for consumption loans to farmers and other allied farm activities up to a sanctioned limit of Rs 1 lakh.
    6. The centre should complete updation and digitisation of land records in a time-bound manner.
  • RBI had set up the 'Internal Working Group’ in February 2019 to understand the reasons for the regional disparity in agricultural credit and suggest measures.

Question: 

Q.1 Choose the correct option to boost the Credit flow in agriculture, as per the recommendations of RBI?
a. No farm waivers
b. Setting up of management information system (MIS) for banks
c. Interest subvention/subsidy to be replaced with DBT
d. All of them
RBI suggest Federal body like GST council for Farming Sector RBI suggest Federal body like GST council for Farming Sector Reviewed by Neha Verma on September 18, 2019 Rating: 5

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