Breather to farmers: NABARD to provide cash to cooperative banks

Raj Kamal Rao

In a relief to farmers facing difficulty in purchasing seeds for Rabi sowing, Government has directed NABARD (National Bank for Agriculture and Rural Development) to sanction 21,000 crores to rural areas to help sowing in Rabi season.

“Finance Minister Arun Jaitley held video-conference with NABARD, RBI and advised them to carry out whole chain of activities smoothly,” said DEA Secretary Shaktikanta Das.

Economic Affairs Secretary Shaktikanta Das addressing a press conference  in New Delhi Photo-PTi

Economic Affairs Secretary Shaktikanta Das addressing a press conference in New Delhi
Photo-PTi

This decision of the government comes a day after Finance Minister Arun Jaitley indicated his department’s intention to announce more measures to reduce the cash crunch stress in rural areas, especially farmers.

“The situation is normalising in the urban areas. In the next few days, the focus will be on the rural areas so that farmers have enough funds because it is rabi sowing season. Few decisions were taken yesterday night which will be made public today,” Finance Minister Arun Jaitley said

Finance Minister Arun Jaitley and other MPs after BJP parliamentary party meeting in New Delhi on Tuesday Photo-PTI

Finance Minister Arun Jaitley and other MPs after BJP parliamentary party meeting in New Delhi on Tuesday
Photo-PTI

Economic Affairs Secretary Shaktikanta Das who addressed the media on Wednesday morning in this regard said that the decision to allow NABARD to grant money will enable district cooperative banks to pass the money to primary Agriculture societies.

“The new denomination notes has been made available in 1,55,000 post offices across the country to help rural people. New measures have been adopted with farmers in mind, and also with  the idea of digitising banking and payment,” Das said.

He said that NABARD, and RBI will make cash available to District Central Cooperative Banks.

Government has asked Public sector banks do away with service charge on digital financial transactions, and said banks have agreed. Railways have also agreed to waive all service charges on online booking of rail tickets

“In an attempt to promote digital transactions at the time of cash crunch, no Service will be levied on digital financial transactions using feature phones till Dec 31st ’16,” he said

Das said the government organisations and public sector facilities have been asked to use only e-payments – that is via card or digital platforms, AADHAAR enabled payments.