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LATEST NEWS UPDATES | Government unveils norms for farm loan waiver scheme

Government unveils norms for farm loan waiver scheme

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published Published on Jul 5, 2016   modified Modified on Jul 5, 2016
-The Hindu

Cooperative societies will get the amount in a phased manner

Chennai:
Pursuant to the announcement made by Chief Minister Jayalalithaa on the waiver of agricultural loans availed by small and micro farmers from cooperative banks, the State government has issued specific guidelines to be followed while implementing the waiver.

According to the Registrar of Cooperative Societies (RCS), the scheme would be applicable to entire outstanding principal, interest, penal interest and all other charges relating to short-term crop loans, short-term agricultural crop loans issued with the pledge of jewels, short-term crop loans which are converted to medium-term loans, medium-term agricultural loans and long-term farm sector loans as on March 31 this year.

Small farmers are those with landholding ranging from 2.5 acre to 5 acre; ‘marginal farmer’ means those with landholding of up to 2.5 acre. The waiver scheme would be applicable to farm sector loans given by central cooperative banks, Primary Agricultural Cooperative Credit Societies (PACCS), Primary Cooperative Agriculture and Rural Development Banks (PCARDD) and Urban Cooperative Credit Societies (UCCS) converted from PACCS.

The agricultural loan, inclusive of principal, interest, penal interest and all other charges outstanding as on March 31, 2016 shall be consolidated as on April 1, 2016 in respect of each eligible member under this scheme, one of the guidelines stated. The RCS has been directed to prepare a consolidated proposal for issuing necessary orders on quantification and reimbursement of waived amount at the earliest. The government would release the principal and interest component of the waived amount in a phased manner to the cooperative societies.

“No further interest of any other charges shall be charged for the loans from April 1, 2016 from farmers or by higher institutions from the affiliate institutions with effect from April 1, 2016. If already charged, it should be reversed in the books of accounts,” the guidelines stated.

The scheme would be applicable to outstanding principal, interest, penal interest and all other charges


The Hindu, 5 July, 2016, http://www.thehindu.com/news/cities/chennai/government-unveils-norms-for-farm-loan-waiver-scheme/article8809159.ece?homepage=true?w=alstates


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