Demonetisation: Cooperative banks to get Rs 21,000 crore for loans to farmers

Shaktikanta Das also says that both govt and private sector banks have agreed to waive off the services charges on online transaction through their debit cards till 31 December


Indian Railways also has agreed to waive service charges on online ticket booking till 31 December. Photo: iStockphoto
Indian Railways also has agreed to waive service charges on online ticket booking till 31 December. Photo: iStockphoto

New Delhi: 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.

Indian Railways also has agreed to waive service charges on online ticket booking till 31 December. “We expect large number of people to migrate to digital transactions as a result of the withdrawal of Rs 500 and Rs1,000 notes,” Das said.

Das said for smoother digital payments at the toll plazas and to avoid waiting time, vehicle manufacturers have been advised to provide Electronic toll collection (ETC) compliant Radio-frequency identification (RFID) facility in new cars.

Das said no decision to extend the time limit of 24 November by when many government utilities have been allowed to receive the demonetised currencies has been taken.

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