After waiving the loans of 86 lakh farmers in its initial days, the Yogi Adityanath-led BJP government in Uttar Pradesh on Monday offered more carrots to the agri community by announcing that cooperative bank loans of more than 12.61 lakh farmers, amounting to Rs 1893 crore, would be written off.
Following a state Cabinet meeting, BJP spokesperson Dr Siddharth Nath Singh said the state government has signed an agreement with cooperative banks to waive 12.61 lakh farmers’ loans and reactivate their bank accounts, which were earlier frozen due to loan default.
“The government will pay 75 per cent of farmers’ loans and banks will bear the burden by 25 per cent. These loans had already come under the category of NPA (non-performing assets). The state government move will not only benefit farmers but also help cooperative banks reduce their NPA (non-performing assets) and give a boost to the cooperative movement in the state,” pointed Dr Singh.
“The banks will re-open frozen accounts of farmers so that they can apply for fresh loans if needed,” he said. The state government had in April announced a farm loan waiver of Rs 30,000 crore shortly after Yogi Adityanath was unexpectedly sprung to the chief minister’s post. However, that loan waiver scheme has come under a cloud lately, after reports of refunds of as little as Rs 10 starting coming to light.