.....CM Chavan said that RBI should categorize the loans given by Commercial Banks to PACS as direct finance to agriculture instead of present practice of treating them as indirect finance. CM Chavan said that in 7 districts of Maharashtra the RBI has imposed certain restrictions on the District Central Co-operative Banks over accepting deposits. This is creating problems in these districts as these DCCBs are not able to fulfill their crop lending targets. He said that since such type of advance is treated as indirect finance to agriculture, commercial banks are not in a position to get interest subvention and also not in a position to lend at 7% to PACS. Mr.Chavan appealed to RBI for speedy disposal of this issue would go a long way in increasing finance to farmers in these districts. .........
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