Finance Minister Nirmala Sitharaman announced that National Bank for Agriculture and Rural Development (NABARD) will provide an additional emergency working capital funding of Rs 30,000 crore to farmers.
This, she said, is over and above the Rs 90,000 crore provided by NABARD through the normal refinance route during this year. The finance minister said that the additional Rs 30,000 crore will be immediately released.
Read live updates from Nirmala Sitharaman's press conference here
NABARD will offer this working capital fund to meet the crop loan requirement of farmers via rural co-operative banks and regional rural banks (RRBs).
This will benefit 30 million farmers, which include small and marginal farmers.
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Under this scheme, Sitharaman said that front-loaded on-top facility will be provided to 33 state cooperative banks, 351 district cooperative banks and 43 regional rural banks based on their lending.
"This will meet the post harvest (Rabi) and current Kharif requirement in May/June. This will directly reach rural India and the small, marginal farmers," said the finance minister.
Sitharaman pointed to the inadequate financial resources available for the small and marginal farmers and added that RRBs and rural cooperative banks are the main source of credit for this category.
This scheme is part of the Atmanirbhar Bharat package announced by Prime Minister Narendra Modi on May 12.