RBI eases crop loan rules as demonetisation hits farmers

Last Updated: Tue, Nov 22, 2016 20:21 hrs
A labourer sits amongst sacks of unsold potatoes at a wholesale market in Manchar village

MUMBAI (Reuters) - Reserve Bank of India (RBI) on Tuesday relaxed rules on loans to farmers, asking the National Bank for Agriculture and Rural Development to disburse up to 230 billion rupees ($3.36 bln) to district cooperative banks for crop loans.

The recent demonetisation scheme has badly hit farmers, leaving them without cash just ahead of sowing winter crops.

RBI also asked banks to ensure the district cooperative banks and regional rural banks, which provide loans to several farmers' cooperatives, get a sufficient amount of cash.

($1 = 68.3665 Indian rupees)

(Reporting by Suvashree Dey Choudhury; Editing by Robin Pomeroy)



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