PM Modi gives 60-day interest waiver on farmer loans

In a 43-minute address to the nation, the second in the last 51 days, Prime Minister Narendra Modi on Saturday announced a 60-day interest waiver for farmers who have taken loans from district co-operative banks and primary societies.

"The government has decided to waive 60-day interest on loans taken by farmers from district co-operative banks and cooperative societies for the Rabi sowing season," he said.

Prime Minister Modi said the cost of the 60-day interest waiver will be directly transferred to each farmer's account.

"Government has also decided that in next three months, three crore Kisan credit cards will be converted to Rupay card and farmers will and can use these cards anywhere," he added.

Prime Minister Modi had last addressed the nation on November 8, when he suddenly abolished 500 and 1,000 rupee notes in a decision aimed at combating corruption and black or undeclared money.

The Prime Minister's move took out 86 per cent of the money in circulation and he had requested people to allow him 50 days to ease the cash crunch that followed, promising that the "short term pain" would be followed by long-term gain."

A deadline to exchange old notes at banks ended yesterday (Friday, December 30.)

As part of the demonetisation drive, how much money can be withdrawn from ATMs and banks will remain controlled for now. Starting tomorrow (January1), the daily limit on ATM withdrawals will go up to Rs. 4,500 rupees from Rs. 2,500, but the weekly cap on withdrawals from bank accounts stays capped at Rs. 24,000 rupees. The Reserve Bank of India has not indicated when the limits will be relaxed or removed.

The opposition united in attacking him for failing to anticipate how hard the notes ban would affect people, particularly in rural India where banks are tough to access.