Due to the nationwide lockdown forced by the COVID -19 pandemic, many farmers are not able to travel to bank branches for loan repayment.
Three months on payment of instalments falling due between March 1, 2020 and May 31, 2020. (Photo: AFP)
Amid the ongoing COVID-19 crisis, the Reserve Bank of India on Tuesday extended the benefit of Interest Subvention (IS) and Prompt Repayment Incentive (PRI) for short term crop loans during the years 2018-19 and 2019-20.
In a notification the central bank said, in the wake of the nationwide lockdown forced by the COVID -19 pandemic, many farmers are not able to travel to bank branches for payment of their short term crop loan dues, RBI said.
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The RBI noted that a moratorium, via COVID-19 Regulatory Package, has already been granted for three months on payment of instalments falling due between March 1, 2020 and May 31, 2020 in respect of all term loans including short term crop loans.
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Hence, the top bank has directed all banks not to impose any penalty on the farmers. It also said that farmers can continue to avail the benefits of interest rate of subvention 2 per cent and preferential rate of 3 per cent up to May 31, 2020 or date of repayment, whichever is earlier, for short term crop loans up to Rs 3 lakh per farmer which have become due between March 01, 2020 and May 31, 2020.
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