On September 2, 2019, the Haryana govt headed by its Chief Minister Manohar Lal Khattar has waived interest and penalty of Rs 4,750 crore on crop loans taken from cooperative banks, Primary Agriculture Cooperative Societies (PACS), District Cooperative Central Banks (DCCB), Land Mortgage Bank (LMB) and Haryana Land Reforms and Development Bank. This will benefit around 10 lakh farmers of the state.

Key points:

• With this announcement, the bank accounts of the farmers, which declared Non-Performing Assets (NPAs) by these banks, will now allowed to change the cycle of loan accounts of their crops.
• PACS: The accounts of over 8 lakh had turned into NPAs, out of 13 lakh farmers who taken a loan from PACS.5% fine imposed on farmers who failed to repay loans borrowed from PACS will now be completely waived off in the state.The farmers will benefit by around Rs 2,500 crore with this move.
• DCCB: The accounts of 32,000 farmers involving an amount of 800 crore rupees have turned NPAs out of 85,000 farmers, who had borrowed loans worth 3,000 crore rupees from DCCB. Farmers will only have to pay 2% interest for loans less than Rs 5 lakh, 5% for loans from Rs 5 lakh – Rs 10 lakh and 10 % for larger loans. The DCCB borrowers will gain by Rs 1,800 crore with this decision.
• LMB: A total of 1.10 lakh indebted farmers of Haryana Land Reforms and Development Bank (Land Mortgage Bank). Out of this, accounts of 70,000 have been declared NPAs. The basic loan amount of these farmers is Rs 750 crore and Rs 1,400 crore interest and penalty. The entire interest of the farmers of these banks has been waived off. Farmers will only have to pay 50 % of the general interest, the state government will bear the remaining 50%. Farmers of this bank will get a benefit of Rs 450 crore from this scheme.