Punjab Agricultural Development Bank to waive penal interest of farmers

Chandigarh (Punjab) [India], October 21 : Punjab government has decided to waive penal interest to those farmers who will pay their entire defaulter amount or close their loan account in Punjab Agricultural Development Bank (PADB), by year-end.
State Cooperation Minister S. Sukhjinder Singh Randhawa in a press briefing on Wednesday said that "entire outstanding penal interest will be waived in the loan accounts of those defaulters of PADBs who pay their entire defaulter amount or close their loan account by December 31, 2020."
According to an official release, the Minister further said that all the 89 PADBs in Punjab have around 69,000 defaulter farmers towards whom a default amount of about Rs. 1,950 crore and penal interest of Rs. 61.49 crore is recoverable.
"Out of these, over 70 per cent are small and marginal farmers owning 5 acres or less than 5 acres of land. This decision will provide them much needed relief in repaying their overdue amount," added S. Randhawa.
"On the directions of Cooperation Minister and recommendation of the Board of Directors of the bank, the Registrar, Cooperative Societies, Punjab has given approval in this regard," the release further stated.
S. Randhawa also said that the State Government led by Chief Minister Captain Amarinder Singh is fully committed to the welfare of the farming community which is evident from the fact that loan of 5.5 lakh farmers has been waived off to the tune of Rs. 4,500 crore.
"The State Government stands shoulder to shoulder with the farmers in this time of crisis and the new bills brought out by the Government in Vidhan Sabha yesterday to counter the black agricultural laws enacted by the Union Government, is a clear cut proof of this," the release said.