NEWS & ADVICE : SAVINGS ACCOUNTS
Irregularities found in the allocation of RIDF by NABARD
By Neelima Shankar
Oct 15, 2012
Print    Email    RSS   

Irregularities have been found in the process of allocation of Rural Infrastructure Development Fund (RIDF) by National Bank for Agriculture and Rural Development (Nabard).

According to reports, Nabard deviated from the usual procedure followed for allocating the fund, and mistakenly allocated Rs. 2000 crore of the funds to private entities last fiscal. The total amount which was to be allocated under RIDF in the year 2011-12 was Rs. 18, 000 crore.

These funds are meant for providing direct loans to state run corporations or enterprises for warehouse financing or for development of critical infrastructure in villages. The amount is provided by commercial banks from their deficit in priority sector lending.

Nabard included private corporations as institutions eligible for receiving funds under RIDF, a noteworthy deviation from the allocation procedure it has followed for the last 16 years. In addition to this, Nabard broke another norm by advancing refinance scheme to banking institutions at higher interest rates of 8 percent as opposed to the normal interest rate of 6.5 percent.

Taking note of the violations in the two norms, RBI has written a strongly worded letter to Nabard asking it to refund the funds provided by banks for financing warehousing needs in rural areas.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Carnival of Indian Personal Finance Blogs #4
How to check balance in savings bank account
Steps to file Income Tax return online
Savings account portability: How...
Carnival of Indian Personal Finance Blogs #3


MY ACCOUNT NO IN SBI IS 36120836791. WHICH IS MY...
my account has old new no open
Balance
can i know my account balance?
how can I change my bank account mobile number
sir my new mobile number .7378547151 my account...

NEWS THIS WEEK
HDFC bank adjudged as the Best private bank in India Feb 16, 2015
HDFC reported an increase of 20% in its net profit Feb 16, 2015
ICICI bank launched Flash remit facility Feb 13, 2015
BOM launched new savings deposit scheme for HNI customers Feb 12, 2015
BMB bank to have a total of 80 branches by the March end. Feb 10, 2015
News Archive