New Delhi, Mar 7 : The Union Cabinet today gave its approval to release of 2615 crore rupees as interest subvention to Public Sector Banks, Regional Rural Banks, Cooperative Banks and NABARD for refinance to regional rural banks (RRB) and Cooperative Banks.

The amount was released at concessional rates to reimburse the amount of interest subvention for the decision that the farmer should receive short terms credit at seven per cent per annum with an upper limit of three lakhs rupees on the principal amount during 2007-08.

The borrowers who avail short term crop loans up to three lakhs rupees will be instantly benefited. (ANI)