60-day interest waiver on farm loans approved by Cabinet

Photo of Prime Minister Narendra Modi.

New Delhi: The Union Cabinet today approved the sixty day interest waiver for farmers who had taken short-term loans from cooperative banks for Rabi sowing season. Prime Minister Narendra Modi’s demonetization brought in problems for farmers due to inadequate cash in carrying out Rabi sowing and paying interest of the short-term loans.

Considering this, the Union Cabinet headed by Modi has approved to ward off the interest waiver for all the farmers for the two months of November and December 2016. According to an official statement, “The Union Cabinet chaired by Prime Minister Narendra Modi has given its ex-post facto approval for interest waiver for the two months of November and December, 2016 for farmers accessing short term crop loans from cooperative banks.”

The approval ensured the availability of resources with banks to help farmers in easily accessing the loans to prevail over the difficulties due to the cash crunch for carrying out Rabi sowing.

An official statement said, “An additional financial liability of Rs 1,060.50 crore will be required for this purpose. A sum of Rs 15,000 crore allocated during 2016-17 to implement the interest subsidy scheme has already been utilized. Additional resources are to be provided to cooperative banks through National Bank For Agriculture and Rural Development (Nabard) for refinance to the cooperative banks on account of interest waiver of two months for November and December, 2016.”

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