Cabinet clears interest waiver for farm loans

Posted on:25 Jan 2017 18:14:06
Cabinet clears interest waiver for farm loans
25 January 2017 Current Affairs: The Union Cabinet has given its ex-post facto approval for an interest waiver of farmers accessing short-term crop loans from cooperative banks for the two months of November and December, 2016 

The decision also provides for interest subvention to National Bank for Agricultural and Rural Development (NABARD) on additional refinance provided by NABARD to Cooperative Banks.

This decision will ensure availability of resources with Cooperative Banks to help farmers to get easy access to crop loans from Cooperative Banks to overcome difficulties due demonisationduring Rabi operations. 

Additional resources are to be provided to Cooperative Banks through NABARD for refinance to the Cooperative Banks on account of interest waiver of two months for November and December, 2016. A sum of Rs. 15, 000 crore already has been allocated to NABARD during 2016-17 to implement the Interest Subvention Scheme (ISS) has already been utilised.

The Union Cabinet also approved NABARD to make short-term borrowings for approximate Rs.20,000 crore at prevailing market rate of interest for on-lending to Cooperative Banks at 4.5% rate of interest. Additional capital of Rs. 2,000 crore will be be provided to NABARD for this purpose through the Union Budget.

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs 2018 June

18 JUNE
NEWS
17 JUNE
NEWS
16 JUNE
NEWS
15 JUNE
NEWS

Current Affairs 2018 May

31 MAY
NEWS
30 MAY
NEWS
29 MAY
NEWS
28 MAY
NEWS

Current Affairs 2018 April

30 APRIL
NEWS
29 APRIL
NEWS
28 APRIL
NEWS
27 APRIL
NEWS