Mumbai, Nov. 5 (PTI): In line with the declining interest rate scenario, the Reserve Bank has revised the lending and deposit rates for undisbursed amounts of the Rural Infrastructure Development Fund (RIDF) IV to IX with effect from November 1, 2003.
The interest on deposits payable to banks for RIDF) IV to VII has been reduced from 8 to 6 per cent while the rate on loan payable by state governments was lowered from 9 per cent to 7 per cent, the RBI said in a release here today and added the revision was done after consultation with the government.
In case of RIDF VIII and IX, the revised rate on deposits would vary between the bank rate (6 per cent) and bank rate minus 3 per cent depending upon the extent of deficit in lending to agriculture, it said.
According to extant norms, the interest rates was linked to the shortfall, bearing between 8 to 5 per cent for RIDF VIII and between bank rate plus 1.5 per cent to minus 1.5 per cent for RIDF IX.
The lending and deposit rates for undisbursed amounts of RIDF IV to VII were last restructured on October 1, 2003.