ST (SAO), Credit limit to Central Co-op. Banks
During 2023–24, NABARD sanctioned a consolidated credit limit of ₹4,290 crore to TNSC Bank on behalf of 22 DCCBs. TNSC Bank, in turn, sanctioned ₹8,887 crore to the DCCBs for financing Seasonal Agricultural Operations, including the cultivation of cereals and other crops. Against this, the DCCBs availed ₹12,592.85 crore, of which ₹8,302.85 crore was met from TNSC Bank’s own resources.
ST (SAO), Issue / Outstanding by DCCBs
During 2023–24, the DCCBs disbursed short-term agricultural loans of ₹17,953.62 crore through PACS, against the target of ₹18,800 crore fixed by the Government of Tamil Nadu. TNSC Bank provided refinance support of ₹12,592.85 crore to the DCCBs during the year.
Interest Subvention, Government of India
The Government of India introduced an interest subvention of 2% in 2007–08 on the own funds deployed by cooperative banks for extending crop loans at 7% per annum, up to ₹3 lakh per borrower. During 2022–23, an interest subvention of 1.5% was provided to cooperative banks on their own funds for crop loans up to ₹3 lakh per borrower. During 2023–24, the Government of India released ₹62.044 crore towards additional and moratorium claims under the 2% interest subvention scheme for cooperative banks, pertaining to the year 2021–22.
Interest Subsidy (2%), Government of Tamil Nadu
The Government of Tamil Nadu provides a 2% interest subsidy to cooperative banks on their own funds deployed for extending crop loans at 7% per annum. During the financial year 2023–24, the Government released ₹270.44 crore against the eligible amount of ₹539.9026 crore.
Interest Incentive (7%), Government of Tamil Nadu
The Government of Tamil Nadu, vide G.O. Ms. No. 94, Cooperation, Food and Consumer Protection Department, dated 31.07.2009, enhanced the interest incentive available to farmers who promptly repay their crop loans from 3% to 7%. During 2023–24, the Government released ₹379.56 crore against the eligible amount of ₹745.71 crore towards the interest incentive.
Primary Cooperatives Development Fund
The Primary Cooperatives Development (PCD) Fund was established at the apex bank level in 1990 to strengthen primary cooperative institutions in the State. Since 1990–91, TNSC Bank and profit-making DCCBs have been required to contribute 5% of their net profits to the Fund.
The PCD Fund is utilised for extending financial assistance to PACS for activities such as establishing Agro-Service Centres and providing special jewel loan cash credit facilities. As of 31.03.2024, the outstanding amount under the Fund stood at ₹53.46 crore.
PACS Deposit Guarantee Fund (PACS DGF)
The Deposit Guarantee Scheme was introduced in Tamil Nadu during 1992–93 to enhance depositor confidence in PACS and promote deposit mobilisation. The Fund is contributed by PACS, DCCBs and TNSC Bank at 0.15%, 0.10% and 0.05% respectively of the term deposits held by PACS as at the end of the preceding financial year.
Under the Scheme, in the event of liquidation of a society, each depositor is eligible to receive compensation of up to ₹10 lakh from the Fund. As on 31.03.2024, the Fund had an outstanding balance of ₹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 01.11.2011, established the Price Stabilisation Fund with an initial corpus of ₹50 crore to provide interest-free financial assistance to cooperative institutions for effective market intervention. The Fund facilitates the procurement of selected commodities prone to significant seasonal price fluctuations and their sale through cooperative outlets at cost price to the public.
TNSC Bank has been managing the Fund since 24.01.2012. As on 31.03.2024, the outstanding amount under the Fund stood at ₹72.80 crore.
Agricultural Credit (Stabilisation) Fund
In accordance with the rules prescribed under G.O. Ms. No. 501, Cooperation Department, dated 08.11.1975, the Government of Tamil Nadu authorised TNSC Bank to administer the Agricultural Credit (Stabilisation) Fund.