The government on Wednesday announced that it will provide Rs.21,000 crore to district central cooperative banks (DCCBs) through NABARD to provide loans to farmers to meet their credit requirements during the winter crop season.
The Reserve Bank of India has prohibited DCCBs from dealing with old currencies after demonetisation of Rs.500 and Rs.1,000 banknotes was announced.
Briefing reporters, economic affairs secretary Shaktikanta Das also said that both government and private sector banks have agreed to waive off the services charges on online transaction through their debit cards till 31 December to promote digital transactions.
“More than 40% of small and marginal farmers in India depend on DCCBs for availing institutional credit. This move will enable DCCBs to pass on credit to primary agricultural cooperative societies to meet crop loan requirements,” Das said.
An welcome move by the Government of India, though little late, as more than 30% of the Rabi crop has been already sown. But, this will definitely boost the PACS as they have the largest network to reach the farmers as the grassroot. Need a swift mechanism to deliver the benefits to the needy farmers immediately.