Rs 14,122 crore worth of bank loans to farmers hit by natural calamities written off in H1 2025-26
New Delhi, Dec 15
The government has written off loans to the tune of Rs 14,122 crore during the current financial year so far (as on September 30) to provide relief to agricultural borrowers affected by floods, landslides, and heavy rainfall, Finance Minister Nirmala Sitharaman informed the Parliament on Monday.
In a written reply to a question in the Lok Sabha, the Finance Minister stated that in this regard, the Reserve Bank of India (RBI) had issued Master Directions on October 17, 2018, on relief measures by banks in areas affected by natural calamities. Cyclones, droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloudbursts, pest attacks, and cold waves have been recognised as natural calamities, she said.
Sitharaman said that in the event of natural calamities declared by the state or Central government, all short-term loans, except those which are overdue at the time of occurrence of a natural calamity, shall be eligible for restructuring. Fresh loans can also be sanctioned by banks to affected borrowers.
She further explained that agricultural term loan instalments are also rescheduled, keeping in view the repaying capacity of the borrower and the nature of the natural calamity.
The restructured portion of the short-term as well as long-term loans may be treated as current dues and need not be classified as Non-Performing Assets (NPA), the Finance Minister added.
Sitharaman tabled the data on the extent of relief on loans provided to agricultural borrowers, which has been compiled by the Reserve Bank. The figures show that Rs 21,882 crore was written off in the financial year 2024-25. Similarly, another Rs 24,426 crore was written off due to the damage caused by natural calamities to agricultural crops in 2023-24.
The Finance Minister also said that the government, in coordination with various stakeholders, including the State Level Bankers' Committee (SLBC), the RBI, the National Bank for Agriculture and Rural Development (NABARD), banks, and state or Central government departments, makes efforts to extend adequate relief measures to the affected borrowers within the best possible timelines.
— IANS
Reader Comments
While the intent is good, I'm concerned about the transparency. ₹14,122 crore is a huge amount. Is there a public portal where we can see which districts, which banks, and how many farmers actually benefited? Accountability is key. Otherwise, it becomes another headline number.
Interesting policy. The RBI's 2018 framework seems to provide a structured approach. Treating restructured loans as current dues and not NPAs is crucial—it prevents banks from turning their backs on farmers in distress and keeps credit flowing. A sensible economic safety net.
My uncle is a farmer in Assam. The floods this year destroyed his entire crop. This news gives me hope that his loan might be reconsidered. The government needs to ensure banks at the ground level are aware and actively implementing these directives. Jai Kisan! ðŸ™
Loan waivers are a temporary fix. What about long-term solutions? Better irrigation, crop insurance (PMFBY) penetration, and climate-resilient seeds. We keep writing off loans every year after calamities. Need to break this cycle with proactive measures.
The coordination between SLBC, NABARD, RBI, and govt departments mentioned is vital. Often, relief gets stuck in bureaucratic delays. Hope they have set clear timelines. A farmer's season waits for no one. Timely support can mean the difference between recovery and ruin.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.