New Delhi: The government on Saturday said banks are fully prepared to help farmers in mitigating the impact of drought in some areas, including re-scheduling of loans.
After reviewing performance of public sector banks, Finance Minister P Chidambaram said agriculture credit is likely to cross Rs 6 lakh crore this fiscal against the target of Rs 5.75 lakh crore.
Besides, he said, 11.5 Kisan Credit Cards (KCC), which are debit cards, will be changed into debit-cum-ATM cards for the benefit of farmers.
"We take note of the fact that parts of India are likely to be affected by drought if they have not already been affected...All bank chairmen have told me that they are fully geared to meet the requirements of farmers in drought-affected areas," he said.
The short-term loans to farmers are being re-scheduled as medium-term loans and banks would be giving them new loans for replanting an alternative crop, he said.
"(Banks) will do everything necessary to ensure the farmers do not suffer much during the drought. Credit will be provided for fodder, credit will be provided for maintaining cattle," he added.
The Minister said banks have informed him that branch managers in affected areas have been "fully sensitised". According to India Meteorological Department(IMD) data, the monsoon rains are deficient by 16 per cent as on August 16.
Karnataka, Gujarat, Maharashtra and Rajasthan are among the areas that have been affected by drought. Chidambaram said banks have provided with taluk-wise numbers for Karnataka, Andhra Pradesh, Maharashtra, Gujarat and some other parts of the country.
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