Nabard sanctions Rs21,000-cr for farm credit, banks boost cash flows

The National Bank for Agriculture and Rural Development (NABARD) has sanctioned up to Rs21,000 crore to district central cooperative banks to help agriculture sector in the ongoing rabi planting operations.

Announcing this at a media conference, secretary, Department of Economic Affairs (DEA), Shaktikanta Das, said the Reserve bank of India, banks as well as Nabard have been asked to ensure availability of cash to co-operative banks and to ensure that farmers get credit and certain amount in cash.

Alongside, Das said, the government is encouraging digital transactions and has decided to do away with service charges. "All digital transactions through feature phones will not be levied with service charges till December 31," he said.

For debit card users, public sector banks and some private banks have agreed to waive off service charges, Das said, adding that 82,000 ATMs have been re-calibrated so far.

Detailing the various measures taken by the government to ease the constraints of the sudden demonetisation, Das said:

  • Charges on transactions made via non-smartphones (feature phones) has been waived off till 31 December;
  • All government organisations have been advised to use only digital payment methods to pay salaries;
  • Deposit limit for Paytm and other digital mobile wallets hiked to Rs20,000;
  • Car manufacturers have been asked to install RFID tag feature in new cars to facilitate cashless transactions at dealerships.

Besides, he said, PSU and some private sector banks have agreed to waive off service charges on use of debit cards till 31 December  and Indian Railways will waive off service charges on e-tickets booked till December 31.

Das added that all government organisations, PSUs and agencies have been advised to use digital payment for paying salaries and other expenses and that all digital transactions through feature phones will not be levied with service charges till 31 December.