Has the Government Written Off Rs 14,122 Crore in Bank Loans for Farmers Affected by Natural Disasters in H1 2025-26?
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Synopsis
In an effort to support farmers impacted by natural disasters, the government has announced a loan write-off of Rs 14,122 crore as of September 30, 2025. This move aims to alleviate the financial burden on agricultural borrowers facing hardships due to floods and landslides, as highlighted by Finance Minister Nirmala Sitharaman in Parliament.
Key Takeaways
- The government has written off Rs 14,122 crore in loans for farmers.
- This relief aims to support those affected by natural disasters.
- Guidelines from the RBI facilitate loan restructuring.
- Short-term loans are eligible for restructuring post-natural calamities.
- The government collaborates with multiple stakeholders to provide timely relief.
New Delhi, Dec 15 (NationPress) The government has written off loans amounting to Rs 14,122 crore in the current financial year as of September 30, providing much-needed relief to farmers impacted by floods, landslides, and heavy rainfall, as highlighted by Finance Minister Nirmala Sitharaman in Parliament on Monday.
In response to a query in the Lok Sabha, the Finance Minister explained that the Reserve Bank of India (RBI) had implemented Master Directions on October 17, 2018, aimed at offering relief measures to banks in regions hit by natural calamities. Disasters such as cyclones, droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloudbursts, pest infestations, and cold waves are categorized as natural calamities, she noted.
Sitharaman elaborated that for natural disasters declared by the state or central government, all short-term loans, with the exception of those that are overdue at the time of the disaster, are eligible for restructuring. Furthermore, banks may also extend fresh loans to borrowers impacted by these events.
She also clarified that the repayment schedules of agricultural term loans may be adjusted based on the borrower's ability to repay and the specific circumstances surrounding the natural disaster.
The restructured parts of both short-term and long-term loans can be recorded as current dues, thus avoiding classification as Non-Performing Assets (NPA), the Finance Minister added.
Sitharaman presented the statistics regarding the relief extended to agricultural borrowers, compiled by the Reserve Bank. The data reveals that Rs 21,882 crore was written off in the financial year 2024-25, and Rs 24,426 crore was similarly waived for damages caused to agricultural crops in 2023-24 due to natural calamities.
The Finance Minister further stated that the government collaborates with various stakeholders, including the State Level Bankers’ Committee (SLBC), the RBI, the National Bank for Agriculture and Rural Development (NABARD), banks, and relevant government departments, to ensure that adequate relief measures reach the affected borrowers promptly.
Point of View
122 crore in loans for farmers affected by natural calamities underscores its commitment to support the agricultural sector. By implementing these measures, the government aims to alleviate financial stress on borrowers, ensuring that they can recover and rebuild post-disaster. This collaborative effort with banking institutions reflects a proactive approach towards safeguarding the livelihoods of those most vulnerable to natural disasters.
NationPress
16/12/2025
Frequently Asked Questions
What is the total amount of loans written off?
The government has written off loans amounting to Rs 14,122 crore for the financial year 2025-26 so far.
What types of natural calamities are included?
Natural calamities include floods, landslides, cyclones, droughts, earthquakes, and more as defined by the government.
Can farmers restructure their loans?
Yes, farmers can restructure their short-term loans if they have been affected by declared natural disasters.
What is the role of the Reserve Bank of India in this context?
The RBI has issued guidelines to provide relief measures for banks in areas impacted by natural calamities.
How does this affect Non-Performing Assets (NPA)?
The restructured portion of loans may be treated as current dues and not classified as Non-Performing Assets.
