Key announcements from PM Modi's New Year's Eve speech

Moneycontrol BureauFollowing the tough decision to demonetise Rs 500 and Rs 1000 currency notes, Prime Minister Narendra Modi today thanked citizens for undertaking a yagna (sacrifice) to cleanse the economy of black money, and announced a number of sops that to help the poor, the rural sector, small businesses and other citizens.Below are the key steps he announced in his speech today.Big push for housing for rural and urban poor - To make it easier for the poor to buy their own homes, PM launched two new housing schemes for the urban poor. - Under Pradhan Mantri Aawaz Yojana (PMAY), the poor and middle class in cities will get 4 percent exemption on interest for home loans up to Rs 9 lakh. - And, 3 percent exemption for home loans up to Rs 12 lakh. - Under PMAY, 33 percent more houses will be built in villages.- Also, home loans up to Rs 2 lakh will get 3 percent exemptions for not just building a new house but also for renovation in villages. The grass is greener for the farmers- 3 crore Kisan credit cards will be converted into RuPay cards in 3 months. - Government will bear 60 days interest on select farm loans. - Last month, NABARD created a fund of Rs 21000 crore. Modi today announced that the government is adding Rs 20,000 crore more to this. The loss that NABARD will suffer by giving loans to cooperative banks and societies at low interest rate shall be borne by the government. Happy new year for MSMEs- Credit guarantee for small businesses doubled to Rs 2 crore.- Banks have been asked to raise cash credit limit for small business to 25 percent from 20 percent.- Banks have also been asked to increase working capital loans from 20 percent of turnover to 30 percent for enterprises that transact digitally.Sops for women and elderly- Pregnant women to get Rs 6,000 in bank accounts to reduce child, woman mortality.- Guarantee of 8 percent rate on deposits for senior citizens up to Rs 7.5 lakh.