ADB, World Bank to give $1.6 bn aid to India

NEW DELHI: Asian Development Bank and World Bank have agreed to provide financial assistance of $1.6 billion for strengthening the rural cooperative credit structure in the country, the Rajya Sabha was informed on Tuesday.

Of the total, ADB would give one billion dollars while the rest would be provided by World Bank, Minister of State for Finance Pawan Kumar Bansal said in a written reply.

The World Bank assistance is proposed in the form of loan of US 300 million from International Bank for Reconstruction and Development (IBRD) and a credit of USD 300 million from International Development Assistance (IDA, he added.

The government has approved a Rs 13,596 crore revival package to strengthen Short Term Rural Cooperative Credit Structure (STCCS), comprising state cooperative banks (SCBs), district central cooperative banks (DCCBs) and primary agriculture credit societies (PACS), Bansal said.

States willing to implement the package are required to sign a Memorandum of Understanding (MoU) with central government and NABARD for carrying out certain legal and institutional reforms.

In order to ensure that STCCS continues on sound financial managerial and governance norms, technical assistance is to be provided to upgrade institutional and human resources, computerisation and setting up proper internal control and accounting systems.