Categories: BusinessUncategorized

Cut rate for pare food subsidy bills

New Delhi: After a lot of pressure, the 54-bank consortium has agreed to reduce the interest rate on cash credits provided to Indian food companies, helping a subsidized bill of 1,100 crore rs every year.
The source said the Bank’s consortium, led by SBI, agreed to cut interest rates earlier this month after a series of negotiations with FCI officials.
Outgo interest in the Ministry of FCI and the Ministry of Food for cash credits around Rs 7,000 Crore every year.
These banks provide 1.6-lakh-crore cash credits every year for food procurement to FCI and state government entities, who buy on behalf of the center, which produces all interest expenses.
“The effective new level of January 1 will be reduced to 6.68% from 7.73%,” said an officer.
While the cash credit limit for the FCI is around Rs 9,500 Crore, around Rs 1.5 lakh Crore for state government agencies with guarantees from the center.
The source said that the food-credit consortium decided that pricing for the FCI cash credit limit would be on average a month of MCLR from the top five lenders instead of the previous interest rate norm of five months from five banks.

news2in

Share
Published by
news2in

Recent Posts

44 ordered to attack the procession

Ludhiana: The police have submitted FIR to four identified and at least 40 unknown attackers…

3 years ago

Punjab: Police Reject conspiracy theory in the case of Deep Sidhu

Sonīpat / Ludhiana / Ambala: Actor Punjabi - Activist Activist Deep Sidhu, who died in…

3 years ago

Punjab: Hidden Strength Working Behind PM Narendra Modi, Arvind Kejriwal, said Rahul Gandhi

PATIALA / MANSA / BARNALA: Attacking Prime Minister Narendra Modi and AAP National Convener Kejriawal,…

3 years ago

BJP made AAP to endanger the Congress, said Ajay

Jalandhar: BJP and AAM AAM AADMI parties are one party, Secretary General of the Ajay…

3 years ago

Our job is to make Punjab No. 1 State: Meenakshi Lekhi

Ludhiana: Minister of Union Culture Meenakshi Lekhi while campaigning to support the BJP candidate from…

3 years ago

Feb 20 is an opportunity to change the destiny of Punjab and his children: Bhagwant Mann

Machhiwara (Ludhiana): AAM AAM AADMI Party (AAP) Head of Punjab Candidate and Members of Parliament…

3 years ago