RBI asks banks to continue with incentives on crop loans, govt to foot bill

Many farmers couldn't visit banks to pay dues on short-term crop loans in the wake of the Covid-19 lockdown and restrictions on movement of people

The Reserve Bank of India (RBI) has asked banks to continue extending the interest subvention and prompt repayment incentive (PRI) on short-term crop loans to farmers where instalment is due between March 1 and May 31, 2020.
 

Many farmers could not visit bank branches in the wake of the nationwide lockdown imposed to control the spread of the coronavirus disease (Covid -19) and the restrictions on movement of people.
 

As a part of the Covid-19 regulatory package, the RBI had granted a three-month moratorium on payment of instalments falling due between March 1 and May 31 on all term loans