Rs6.6b interest on crop loans waived off: Govt

new delhi — In relief to farmers who reeled under cash crunch on account of demonetisation, the government on Tuesday decided to waive Rs6.6 billion interest on short-term crop loan for November-December 2016 and grant Rs4 billion to Nabard to bear refinancing cost 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 hardships because of scrapping of Rs500 and Rs1,000 notes from November 8 mid-night.

“The cabinet today approved interest waiver of Rs6.6 billion for two months (November-December 2016) for farmers who have taken short-term loans from co-operative banks,” agriculture minister Radha Mohan Singh said.

According to a government release, the cabinet has approved Rs10.6 towards “the cost of interest waiver for two months (November-December, 2016) for crop loan disbursed by co-operative banks between April 1 2016 and September 30 to farmers and providing interest subvention and administrative cost to Nabard on short-term borrowing of about Rs200 billion for on-lending to cooperatives banks in the current financial year”.

According to the proposal, farmers who have paid interest on shortterm loans during the demonetisation period of November and December will get the refund in their bank accounts through direct benefit transfer (DBT).

He said further a sum of Rs150 billion allocated during 2016-17 to implement the Interest Subvention Scheme has already been utilised. — PTI