Centre's Stimulus Package for Farmers: What You Need to Know

NABARD will extend additional refinance support of Rs 30,000 crore for crop loan requirement of rural co-op banks & RRBs.
FM Nirmala Sitharaman
FM Nirmala Sitharaman

Guwahati:

As part of the Rs 20 lakh crore stimulus package announced by the Government, Finance Minister Nirmala Sitharaman today announced special incentives undertaken with the motive of boosting the sector amid the extended lockdown called by the Centre to curb the spread of the COVID-19.

Rs 30,000 crores additional emergency working capital funding for farmers through NABARD

Finance Minister Nirmala Sitharaman announced today that the National Bank for Agriculture and Rural Development (or NABARD) will extend additional refinance support of Rs 30,000 crore for crop loan requirement of rural co-op banks & RRBs.

This is over and above Rs 90,000 crore to be provided by NABARD through the normal refinance route during this year. Front-loaded on-tap facility to 33 state co-operative banks, 351 district co-operative banks and 43 RRBs available on tap based on their lending. The move will benefit around 3 crore farmers - mostly small and marginal farmers -- to meet post-harvest (Rabi) and current Kharif requirement in May-June.

Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan credit cards

The Finance Minister has also announced that a special drive will be undertaken to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards. Fishermen and animal husbandry farmers will also be included in this drive, Sitharaman said, adding that this will enable farmers to gain access to institutional credit at concessional interest rate. Around 2.5 crore farmers will be covered and will benefit from credit flow of about Rs 2 lakh crore, she further opined.

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