Daijiworld Media Network - Bengaluru

Bengaluru, Sep 17: The Karnataka government has announced a 12-month moratorium on the repayment of Kisan Credit Card (KCC) loans, agricultural loans and loans related to dairy farming, sericulture, fisheries and other allied agricultural activities in drought-hit taluks.

The repayment period will be extended to 36 months in moderately drought-hit taluks and 60 months in severely drought-hit taluks.

The decision was taken at a meeting of the State Level Bankers' Committee (SLBC) chaired by the Chief Secretary on Wednesday.

The government has declared 101 taluks across 24 districts as drought-hit, of which 89 have been classified as severely drought-hit and 12 as moderately drought-hit.

In addition to postponing repayment of existing loans, banks will provide fresh loans, subject to their rules and regulations, to meet the immediate financial requirements of farmers, according to a state government release.

The government also said that if additional taluks are declared drought-hit in the future, the relief measures will automatically be extended to them without the need for a separate SLBC meeting.

The chief secretary said the issue of extending repayment periods for loans obtained from cooperative banks would be discussed with the National Bank for Agriculture and Rural Development (NABARD) and the state government, following which an appropriate relief package would be worked out.

The relief package is scheduled to be implemented by October 11, 2026, within 45 days of the drought declaration. Banks have been directed to complete the entire relief process by January 9, 2027, within 135 days.

Canara Bank, the SLBC convener bank, will upload the final proceedings of the SLBC meeting on the concerned portals by September 26.

The government has also introduced a strict zero-tolerance policy against forced recovery from farmers during the year. District administrations have been instructed to immediately respond to complaints from farmers and contact the concerned banks before any recovery process is initiated.

Deputy Commissioners, Chief Executive Officers and Lead District Managers, along with officials from the Agriculture, Horticulture, Animal Husbandry and Disaster Management departments, will conduct video conferences to ensure that information about the relief measures reaches farmers directly.