In a relief to farmers who reeled under a cash crunch on account of demonetisation, the NDA Government today decided to waive the Rs. 660.5-crore interest on short-term crop loans for November-December 2016 and grant Rs. 400 crore to Nabard to bear the refinancing costs of co-operative banks.
A decision in this regard was taken at the Cabinet meeting chaired by Prime Minister Narendra Modi to help farmers who faced hardship because of the scrapping of Rs. 500 and Rs. 1,000 notes from November 8.
“The Cabinet today approved interest waiver of Rs. 660.5-crore for two months (November-December 2016) for farmers who have taken short-term loans from co-operative banks,” Agriculture Minister Radha Mohan Singh told PTI after the meeting.
According to a government release, the Cabinet has approved Rs. 1,060.50 crore towards “the cost of interest waiver for two months (November-December, 2016) for crop loans disbursed by co-operative banks between April 1, 2016 and September 30, 2016, to farmers and providing interest subvention and administrative cost to Nabard on short-term borrowing of about Rs. 20,000 crore for on-lending to cooperatives banks in the current financial year”.
According to the proposal, farmers who have paid interest on short-term loans during the demonetisation period of November and December will get the refund in their bank accounts through direct benefit transfer (DBT).
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