Banks to offer financial respite to farmers in 101 drought-hit taluks in Karnataka
Banks in Karnataka, under the guidance of the State Level Bankers’ Committee (SLBC), will implement a financial relief package for farmers in 101 drought-hit taluks. The package includes a 12-month loan repayment moratorium, extended repayment periods, and fresh credit support for agricultural activities.
Why it matters
This comprehensive relief package is crucial for supporting drought-affected farmers, preventing financial distress, and ensuring the continuity of agricultural operations in a vital region. It demonstrates a coordinated effort between the banking sector and the state government to mitigate the economic impact of environmental challenges.
Banks in Karnataka have come forward to extend relief package to farmers in 101 drought-hit taluks across the State.
The State Level Bankers’ Committee (SLBC), an apex inter-institutional forum created by the Reserve Bank of India (RBI) under the Lead Bank Scheme to coordinate between the banking sector and the State government, convened a special meeting to deliberate on relief measures for drought-affected borrowers, mostly farmers.
According to an SLBC communique, the meeting assumes importance following the State government’s recent declaration of drought in 101 taluks, including 89 severely affected taluks and 12 moderately affected taluks, spread across 24 districts.
The banking sector has agreed in principle to implement a comprehensive relief package for eligible borrowers of agriculture and allied activity in accordance with RBI guidelines.
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