Short-Term Agricultural Advances
ST (SAO) - Credit limit to Central Coop. Banks
During the year 2023-24, NABARD sanctioned a consolidated credit limit of Rs.4290 crore to TNSC Bank on behalf of 22 DCCBs and TNSC Bank sanctioned a consolidated credit limit of Rs 8887 crore for financing Seasonal Agricultural Operations for cultivating various crops, including cereals. During 2023-24, DCCBs had availed Rs.12592.85 crore in which, Rs. 8302.85 crore being the own resources of TNSC Bank.
ST (SAO) - Issue / Outstanding by DCCBs
During the year 2023-24, the DCCBs issued short term agricultural loans through PACS to the extent of Rs.17953.62 crore as against the target of Rs.18800 crore fixed by the Government of Tamil Nadu and TNSC Bank has refinanced to tune of Rs.12592.85 crore to DCCBs.
Interest Subvention - GOI
Government of India had implemented the policy of provision of 2% interest subvention for the year 2007-08 for the own involvement of coop. banks for issuing crop loans @ 7% upto Rs.3 lakh per borrower. During 2022-23, Government of India had implemented the policy of provision of 2% interest subvention for the own involvement of coop. Banks for issuing crop loans @ 1.5% upto Rs.3.00 lakhs per borrower. During 2023-24, Government of India has released the additional claim and Moratorium claim for 2% interest subvention to coop. banks for a sum of Rs.62.044 crore pertaining to the year 2021-22.
Interest Subsidy (2%) – Govt. of Tamil Nadu
The Government of Tamil Nadu is providing 2% interest subsidy to coop. banks for their own involvement in issuing crop loans @ 7% per annum. For the Financial Year 2023-24, the Government of Tamil Nadu released a sum of Rs.270.44 crore out of the eligible amount of Rs.539.9026 crore.
Interest Incentive (7%) – Govt. of Tamil Nadu
The Government of Tamil Nadu vide G.O. Ms. No.94, Cooperation, Food and Consumer Protection Department, dated 31.7.2009, enhanced the interest incentive benefit from 3% to 7% to the farmers, who are promptly repaying the crop loan on time. For the year 2023-24, the Government of Tamil Nadu released a sum of Rs.379.56 crore out of the eligible amount of Rs.745.71 crore.
Primary Cooperatives Development Fund
The Primary Cooperatives Development Fund (PCD Fund) was created at the Apex Bank level in the year 1990 in order to strengthen the Primary Cooperatives in the State. TNSC Bank and the profit-making DCCBs are required to contribute 5% of their net profit to the fund from the year 1990-91 onwards.
Loans were sanctioned to PACS out of PCD Fund for establishment of Agro-Service Centre, providing special jewel loan cash credit, etc. The amount outstanding as on 31.3.2024 was Rs.53.46 crore.
PACS Deposit Guarantee Fund (PACS DGF)
With a view to creating a sense of security and confidence in the minds of depositors in PACS and for giving impetus to the deposit mobilisation by PACS, Deposit Guarantee Scheme was introduced in Tamil Nadu in the year 1992-93. The corpus of the Fund was contributed by the PACS, DCCBs and TNSC Bank in the ratio of 0.15%, 0.10%, 0.05% of the term deposit held by the PACS, as at the end of the previous financial year. As per the scheme, in case of liquidation of a society, each depositor is eligible to receive a maximum of Rs.10.00 lakh from the Fund. The amount outstanding as on 31.3.2024 was Rs.423.47 crore.
Price Stabilisation Fund
The Government of Tamil Nadu vide G.O. Ms. No.97, Cooperation, Food and Consumer Protection (H1) Department, dated 1.11.2011, constituted a Fund titled 'Price Stabilisation Fund' with the corpus of Rs.50 crore, to extend interest free financial support to the Cooperatives for effective market intervention by procuring selected commodities that are proven to abnormal price fluctuation from season to season and selling them through cooperative outlets at cost price to the public. TNSC Bank has been managing this Fund from 24.1.2012 onwards. The amount outstanding as on 31.3.2024 was Rs.72.80 crore.
Agricultural Credit (Stabilisation) Fund
As per the Rules set out in the G.O. Ms. No.501 dated 8.11.1975 (Cooperation Department), Government of Tamil Nadu authorised TNSC Bank to administer the Agricultural Credit (Stabilisation) Fund.