Module 11: Rural Infrastructure Development Fund (RIDF) Operations

📖 Chapter 7 of 10 🧩 Module 13 of 18 ⏱️ ~2 min read 💡 1 MCQs

Topic Part 1 of 2

The Rural Infrastructure Development Fund (RIDF) was created by the Central Government in 1995-96 and is managed by NABARD. It is financed through contributions from domestic commercial banks falling short of their mandatory priority sector agricultural lending targets.

Scope & Sectoral Loan Limits:

RIDF covers 36 eligible infrastructure activities categorized into three broad sectors:

Agriculture and Allied Sectors: Loans up to 95 percent of total project cost.
Social Sectors: Loans up to 90 percent for North Eastern states and 85 percent for other states (including Bihar).
Rural Connectivity: Loans up to 90 percent for North Eastern states and 80 percent for other states.

Primary Strategic Benefits of RIDF:

Unlocking sunk public capital investments in incomplete irrigation and road projects.
Accelerating irrigation potential creation and soil conservation across the state.
Expanding direct rural employment during construction and secondary employment via rural roads.
Enhancing drinking water supply, primary health centers, and rural market yards.

⭐ Key Points

Agriculture and Allied Sectors: Loans up to 95 percent of total project cost.
Social Sectors: Loans up to 90 percent for North Eastern states and 85 percent for other states (including Bihar).
Rural Connectivity: Loans up to 90 percent for North Eastern states and 80 percent for other states.

📌 One-line Q&A

Agriculture and Allied Sectors: Loans up to 95 percent of total project cost.
Social Sectors: Loans up to 90 percent for North Eastern states and 85 percent for other states (including Bihar).
Rural Connectivity: Loans up to 90 percent for North Eastern states and 80 percent for other states.

Questions 1 MCQs

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What maximum percentage of the project cost is financed by RIDF for agriculture and related sector schemes?

Under RIDF norms, loans for agriculture and related sectors are provided up to 95 percent of project cost.

Question 1 of 1

One-liners

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Agriculture and Allied Sectors: Loans up to ______ of total project cost.

95 percent

Social Sectors: Loans up to ______ for North Eastern states and 85 percent for other states (including Bihar).

90 percent

Rural Connectivity: Loans up to ______ for North Eastern states and 80 percent for other states.

90 percent