The Reserve Bank of India (RBI) has given an additional 60 days for prompt repayment incentive of 3 per cent interest subsidy to farmers who repay their crop loans due in November-December. Centre has been implementing the Interest Subvention Scheme since 2006-07. As per the scheme for the year 2016-17 besides subvention of 2 per cent per annum, an additional interest subvention of 3 per cent is also provided to prompt payee farmers from the date of disbursement of the crop loan. This subvention benefit does not accrue to those farmers who repay after one year of availing such loans. In view of the constraints faced by farmers for timely repayment of loan dues on account of withdrawal of legal tender status of old Rs 500/1,000, the RBI said the Government of India (GoI) has decided to provide the grace period. “It has been decided by the GoI to provide an additional grace period of 60 days for prompt repayment incentive of 3 per cent to those farmers whose crop loan dues are falling due between November 1 and December 31, 2016 if such farmers repay the same within 60 days from the above period,” the RBI said in a notification. Rural areas are still facing acute cash crunch following demonetisation of old high denomination notes from November 9 and subsequent limits on withdrawals. Queues have been witnessed at banks and ATMs all across the country. In a notification on November 21, the RBI had said loan accounts which will come under 60 days grace period will include running working capital accounts — OD/CC)/crop loans — with any bank with a sanctioned limit of Rs 1 crore or less and term loans, whether business or personal, secured or otherwise, the original sanctioned amount is Rs 1 crore or less, on the books of any bank or any NBFC, including NBFC Source - http://indianexpress.com