Lok Sabha Question No. 31 (STARRED), answered on 2019-06-24
Subject: Waiver of Bank Loans
Ministry: FINANCE
Asked by: Suresh Kodikunnil

## GOVERNMENT  OF INDIA

## MINISTRY OF  FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA STARRED QUESTION NO: *31 TO BE ANSWERED ON THE 24 th  JUNE, 2019/ASHADHA

## QUESTION Waiver  of Bank Loans

## *31:   SHRI KODIKUNNIL  SURESH:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether   the  Union   Government   has  taken   any   steps  to  declare   waiver   or moratorium  of bank  loans for the victims  in flood affected area in  Kerala; and
- (b) if so, the details  thereof?

## 3, 1941  (SAKA)

## ANSWER

## FINANCE  MINISTER

(SMT. NIRMALA  SITHARAMAN )

- (a) and (b): A statement  is laid  on the Table  of the House.

***

Statement  as referred  to in reply  to parts (a) and (b) of Lok Sabha Starred Question no. *31  for  answer on 24 th June, 2019/  Ashadha 3  (Saka), 1941 regarding 'Waiver  of Bank Loans' by SHRI KODIKUNNIL  SURESH, Hon'ble Member of Parliament

- (a)  and  (b):  As  per  inputs   received   from State  Level   Bankers   Committee, Kerala (SLBC),  in the context  of floods in Kerala in August  2018, Scheduled  Commercial Banks including  Regional  Rural  Banks were  advised for implementation of a set of relief   measures  for flood affected areas in Kerala adopted  in a meeting  of SLBC

held on 20.8.2018. These included  restructuring/rescheduling of  short-term   crop loans and long-term  (investment)  credit  with  moratorium for  minimum  one year without   any   additional   security/guarantee, waiving   of  penal   interest,   providing need-based  long  term loan  and  working   capital   limit   for  repair/acquisition of damaged  productive   asset,  and  sanctioning   of  fresh  crop  loans  as  per  extant guidelines.   As  per  SLBC's   report,   till   December   2018,  pursuant   to  these  relief measures   for  the  Kerala  floods,   banks   in  Kerala   restructured a  total   amount   of Rs. 5,513 crore  in 1,24,623 accounts,    provided  moratorium in 1,60,672 accounts involving   Rs.  6,968  crore,   and  waived   penal   interest   of  Rs.  32  crore.   Under Government   of  India's   scheme  for  2%  interest   subvention   for  short-term   crop loans  up  to  Rs.  3  lakh,   restructured   amounts   are  also  eligible   for  continued availability of  the  interest   subvention   for  the  first   year.   Banks   also  provided additional  finance  of Rs. 2,027 crore  till  May  2019 to calamity  affected borrowers consequent  to the Kerala floods.

Further,   as  per  inputs   received   from National   Bank for  Agriculture and  Rural Development   (NABARD) ,  subsequent   to  the  Kerala  floods,  credit   limit   under NABARD's  Short Term  Seasonal Agricultural Operations  Scheme to Kerala State Cooperative   Bank has  been  enhanced   by   NABARD   from Rs.  1,100  crore   to Rs. 1,500 crore.  Refinance  under  this line  of credit  is extended  to State Cooperative Banks at a concessionary  annual  rate of interest  of 4.5% from out of Short  Term Cooperative  Rural  Credit  (Refinance)  Funds for providing  crop loans  to farmers.