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The Reserve Bank of India (RBI) would examine the issue of allowing banks to adopt the agency model by using the infrastructure of civil society organisations, rural kiosks and village knowledge centres, to provide credit support to rural and farm sectors. Announcing this while presenting the Budget proposals for 2005-06, the Finance Minister, Shri P. Chidambaram, said that the government would continue with its effort to turn the focus of commercial banks, regional rural banks (RRBs) and cooperative banks towards providing credit, especially production credit, to rural households and farm households.
He said that commercial banks, RRBs and cooperative banks would be asked to increase the flow of credit by another 30%in the ensuing financial year and hoped that all these arms would disburse the agriculture credit of Rs.108,500 crore in the current fiscal.
SB/MVVS/VBA/MRS
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