Context:
Union Cabinet approves continuation of Modified Interest Subvention Scheme for FY 2025-26
Modified Interest Subvention Scheme (MIS):
- Type: Central Sector Scheme.
- Objective: Provides affordable short-term credit to farmers via the Kisan Credit Card (KCC).
- Loan Benefits: Farmers can avail loans up to ₹3 lakh at a subsidized interest rate of 7%.
- Interest Subvention: A 1.5% interest subsidy is provided to eligible lending institutions.
- Prompt Repayment Incentive (PRI): Farmers repaying loans on time receive up to 3% incentive, reducing the effective interest rate to 4%.
- Animal Husbandry & Fisheries Loans: Interest benefits are applicable for loans up to ₹2 lakh in these sectors.
- Implementing Agencies: Reserve Bank of India (RBI) & National Bank for Agriculture and Rural Development (NABARD).
Other Agricultural Credit Mechanisms:
- Agriculture Infrastructure Fund (AIF) –
- Supports medium to long-term financing for farm-gate storage & logistics.
- Reduces post-harvest losses and dependence on intermediaries.
- Promotion of Renewable Energy (PM-KUSUM) –
- Provides subsidies (30–50%) for solar pumps and solarizing existing pumps.
- Encourages installation of solar power plants, cutting emissions and improving rural energy access.
- Voluntary Carbon Market (VCM) –
- 11 agricultural projects registered on the Veera VCS platform.
- Focuses on sustainable farming practices while generating carbon credits.
Source: PMI
Previous Year Question
With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?
1. It is introduced as a part of the Income Tax Act.
2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.
Select the correct answer using the code given below:
[UPSC Civil Services Exam – 2018 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (d)