NABSanrakshan, govt sign trust deed for Credit Guarantee Fund Trust for FPOs
This credit guarantee fund is part of the governments scheme for Formation and Promotion of 10,000 Farmer Produce Organisations (FPOs) across the country.
NABSanrakshan Trustee Pvt Ltd (NTPL), a subsidiary of Nabard, and the Government of India on Monday signed a trust deed for the Rs 1,000 crore of the Credit Guarantee Fund Trust for Farmers Producer Organisations (CGFTFPO).
This credit guarantee fund is part of the government's scheme for 'Formation and Promotion of 10,000 Farmer Produce Organisations (FPOs)' across the country.
"The credit guarantee fund of Rs 1,000 crore will be housed in Credit Guarantee Fund Trust for Farmer Producer Organisations (CGFTFPO) under the trusteeship of NABSanrakshan Trustee Private Ltd (NTPL)," Nabard said in a statement.
The CGFTFPO is only the second such trust formed in the agriculture and allied sector for providing credit guarantee.
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The credit guarantee offered through the trust will enhance the creditworthiness of FPOs besides facilitating cost-effective production and productivity leading to higher net incomes to the farmers who are members of FPOs, the statement said.
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