The Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley stated that the Agriculture Credit flow target of ₹ 11 lakh crore for the Financial Year 2018-19 is achievable by the banking sector and would add to the momentum towards doubling the farmers’ income by 2022. The Finance Minister, Shri Jaitley was delivering the Annual Address to Board of National Bank for Agriculture and Rural Development (NABARD) here in New Delhi today. He also reviewed the Funds announced in the earlier Union Budgets and stressed the need for all the stakeholders to collaborate to improve the farmers’ income. The Finance Minister, Shri Jaitley emphasized that the banking sector must invest in long term assets to improve the capital formation in Agriculture Sector. He further stated that the investments in financial technology over the past few years have brought in efficiency, speed and transparency in the rural financial eco system.

Shri Rajeev Kumar, Secretary, Department of Financial Services, Government of India, highlighted the necessity of financial inclusion and adoption of technologies to make use of the opportunities arising out of higher GDP growth. He requested the banking system to concentrate on geographical areas like North East, East and Central India where the formal credit can give a fillip to the growth potential these areas offer. He also mentioned that his Department is actively engaged with other Ministries to create an enriching eco-system.

Dr. Harsh Kumar Bhanwala, Chairman, NABARD mentioned that NABARD has operationalised the funds announced in the previous Union Budget and specifically said that the Prime Ministers’ Grameen Awas Yojana is about to be supported through ₹ 9000 crore shortly. The ₹ 5000 crore Micro Irrigation Fund which will promote water conserving and productivity enhancing technologies, will also be operationalised shortly. He emphasised the need for formation of robust Farmer Producers Organisations (FPOs) and committed to the Finance Minister that NABARD will also form FPOs quickly.

Agriculture credit target mobilizes banking investment and fintech to boost farmer incomes and rural capital formation. An 11 lakh crore agriculture credit flow target for 2018-19 is presented as achievable and intended to support doubling farmers' income; banks are directed to prioritise priority sector lending to agriculture, invest in long term agricultural assets to improve capital formation, and adopt financial technology to enhance rural finance efficiency. Administrative measures stress financial inclusion, targeted outreach to underserved regions, operationalisation of budgeted sectoral funds including support for a rural housing scheme and a Micro Irrigation Fund, and accelerated formation of Farmer Producer Organisations to improve access to credit and services.