The Cabinet on Tuesday approved waiver of around Rs 660-crore interest on short-term crop loans for the November-December 2016 period. It also provided R400 crore to NABARD to meet the refinancing cost of cooperative banks. The Cabinet also approved the launch of the Varishtha Pension Bima Yojana 2017 for senior citizens and granted IIMs the status of Institutions of National Importance, which will enable them to provide degrees to students.
As per the proposal, farmers who have already paid interest on short-term crop loans for the above-mentioned period will get refunds in their bank accounts. The government provides short-term crop loans of up to Rs 3 lakh at a subvented interest rate of 7 per cent per annum.