Indian Finance Ministry has decided to revamp the interest subvention scheme by channeling it through direct benefit transfer (DBT) or changing the character of the scheme in the wake of complaints about its misuse and distortion in the pricing of credit. The Ministry has asked public sector banks to come up with suitable alternatives to extend loans at reduced rate to small and marginal farmers. The three proposals made by the department of financial services (DFS) to PSU banks include: only 2 per cent subvention upfront/ the need for 3 per cent additional subvention for prompt repayment; scheme in its existing form or only for small and marginal farmers; and DBT either to all farmers or only to small and marginal farmers. RBI Governor Raghuram Rajan had recently said that interest subventions distort the price of credit and lead to misuse.