Context
The Cabinet has given its ex-post facto approval for an interest waiver for the two months of November and December, 2016 for farmers accessing short-term crop loans from cooperative banks
What has happened?
The Cabinet has given its ex-post facto (with retrospective effect) approval for an interest waiver for the two months of November and December, 2016 for farmers accessing short-term crop loans from cooperative banks.
- It also approved an interest subvention to NABARD on the additional refinance by NABARD to cooperative banks
- Benefit to farmers: Farmers in the whole of India availing short term crop loans from cooperative banks will be benefited. The decision intends to ensure availability of resources with cooperative banks helps farmers in easily accessing crop loans from cooperative banks to overcome the difficulties in view of the reduction in availability of cash for carrying out Rabi operations”
- The Cabinet also approved NABARD to make short-term borrowings
