In the midst of the Corona crisis, the big decision for the RBI farmers is to get this relief on crop loans


 The country has a lockdown until May 3 due to the Corona virus.  In the midst of this lockdown, the Reserve Bank of India has given relief to farmers.  The Reserve Bank has issued a notification directing banks to extend the term of Interest Assistance Scheme (IS) and Immediate Payment Incentive (PRI) to farmers.



* A lockdown has been declared in the country till May 3 due to the Corona crisis

* The Reserve Bank increased the time limit on repayment of crop loan installments to farmers


 What is said in the notification
The notification said that due to the nationwide lockdown due to covid-19, the movement of people is restricted.  Because of this, farmers cannot go to bank branches to pay their short-term crop loan arrears.  In the past, the RBI has declared a circular.

 According to the circular, from March 1, 2020 to May 31, 2020, all loan installment payments, including short-term crop loans for three months, will be barred for 3 months.  It said the government has decided to continue the two per cent interest subsidy and the 3 per cent incentive on interest for timely repayment of loans till May 31, 2020.  This facility will be available to farmers on short term crop loans up to Rs 3 lakh.
Farmers benefit from this step
The central bank said the move would benefit farmers.  This will enable them to avail the benefit of interest subsidy scheme and interest incentive till the end of May.  Short-term crop loans of up to Rs 3 lakh are given to farmers at 7 per cent annual interest.  Of this, 2 per cent is given by the government to the banks on an annual basis in the form of interest subsidy.  Farmers who repay the loan on time are given an extra 3 per cent rebate in interest.

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