RBI Eases Crop Loan Rules As Demonetisation Hits Farmers

Mumbai: The 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 Rs 23,000 crore ($3.36 billion) 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.

The 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 = Rs 68.3665)