Regulatory Alerts2025-10-16 | ACFID Circular Letter No. 01 of 2025 of 2025Added · Updated
National Subsistence Farmers Support Initiative (NSFSI) under Risk Coverage Scheme for Small Farmers and Underserved Areas
Banks and Microfinance Banks are required to leverage the end-to-end digital solution, now renamed Zarkhez-e, to provide collateral-free financing to subsistence farmers and tenants. At least 75% of financing must be disbursed in-kind for quality inputs from on-boarded Agri-merchants, with up to 25% in cash, following integration with the centralized portal and Land Information Management System. Loans under this scheme receive 10% first loss coverage and an operational cost subsidy of Rs. 10,000 per borrower for net increases in outstanding borrowers. Institutions are encouraged to complete system integrations and merchant onboarding to ensure a uniform rollout.