**Executive Summary**
This document is a response to Unstarred Question No. 2301 in the Lok Sabha, answered on December 15, 2025, concerning the financial distress of farmers in Maharashtra due to excessive and unseasonal rains. It addresses concerns about loan repayment pressures and potential government support measures. The document provides information on RBI guidelines and actions taken by the State Level Bankers' Committee (SLBC) in Maharashtra to alleviate the situation.
**Key Points / Main Content**
* **Loan Repayment Pressure:**
* The State Level Bankers' Committee (SLBC), Maharashtra, reported that banks are not pressuring farmers affected by excessive and unseasonal rains for loan repayment.
* **RBI Guidelines:**
* The Reserve Bank of India (RBI) issued Master Directions on 17 October 2018 on relief measures.
* These guidelines include restructuring loans without downgrading asset classification and sanctioning fresh loans in areas affected by natural calamities.
* Banks are advised by SLBC to adhere to RBI guidelines on relief measures.
* **Government of Maharashtra Declaration:**
* The Government of Maharashtra declared a natural calamity in the state via letter dated 26.11.2025.
* SLBC, Maharashtra, informed all member banks to restructure eligible crop loans and postpone loan recovery from affected farmers as per RBI guidelines.
* **Restructuring and Rephasement:**
* 17.29 lakh eligible accounts, amounting to ₹26,658.77 crore, have been identified for restructuring/rephasement.
* **Modified Interest Subvention Scheme (MISS):**
* Para 2(v) of the MISS Guidelines provides interest subvention for the first year on the restructured loan amount.
* Restructured loans will attract normal interest rates from the second year onwards.
**Impact Analysis**
**Stakeholder: Farmers in Maharashtra**
* **Impact:** Those affected by excessive and unseasonal rains will benefit from the restructuring of loans and the potential adjournment of loan recovery proceedings, as well as the MISS guidelines on interest subvention.
* **Action Required:** Farmers should consult with their banks to determine their eligibility for loan restructuring and to understand the terms of the Modified Interest Subvention Scheme (MISS).
**Stakeholder: Banks in Maharashtra**
* **Impact:** Banks are required to adhere to RBI guidelines for relief measures and restructure eligible crop loans.
* **Action Required:** Banks need to identify eligible accounts for restructuring, implement the Modified Interest Subvention Scheme (MISS), and adhere to RBI guidelines on relief measures for farmers affected by natural calamities.
**Stakeholder: State Level Bankers' Committee (SLBC), Maharashtra**
* **Impact:** SLBC is responsible for communicating the directives and guidelines from RBI and the Government of Maharashtra to member banks.
* **Action Required:** SLBC needs to ensure that member banks are informed about RBI guidelines and the government's declaration of natural calamity, as well as monitor the implementation of loan restructuring and the Modified Interest Subvention Scheme (MISS).
Key Entities Referenced
Maharashtra: Indian state where farmers are facing financial distress due to excessive rains.
Reserve Bank of India (RBI): Issued Master Directions on relief measures for banks in areas affected by natural calamities.
State Level Bankers' Committee (SLBC): Committee in Maharashtra that reported no pressure from Banks for loan repayment on farmers affected by excessive rains.
Modified Interest Subvention Scheme (MISS): Scheme that provides guidelines for interest subvention on restructured loans.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 2301
ANWERED ON MONDAY, DECEMBER 15, 2025/AGRAHAYANA 24, 1947 (SAKA)
Financially Distressed Farmers in Maharashtra
2301. SHRI BHASKAR MURLIDHAR BHAGARE:
SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:
SMT. SUPRIYA SULE:
SHRI SANJAY DINA PATIL:
DR. AMOL RAMSING KOLHE:
PROF. VARSHA EKNATH GAIKWAD:
Will the Minister of FINANCE be pleased to state:
(a) whether Central Government is aware that farmers across several districts of Maharashtra
are facing acute financial distress due to large-scale crop losses caused by excessive and
unseasonal rains, if so, whether reports have been received that banks are pressurising affected
farmers for loan repayment, thereby aggravating their mental and financial hardship and if so,
the details thereof;
(b) whether the Government proposes to issue directions or advisory guidelines to public sector
banks, cooperative banks and other lending institutions to temporarily suspend recovery
proceedings, delay repayment schedules or provide a moratorium period for farmers affected
by the recent rains in Maharashtra and if so, the details thereof;
(c) whether the Government intends to extend financial support to the rain-affected farmers of
the said State through compensation, resowing assistance, interest subvention, restructuring of
crop loans or any special package to help them prepare for the upcoming cropping season; and
(d) if so, the details of expected benefits of such measures?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) There is no pressure from Banks for loan repayment on farmers affected by excessive &
unseasonal rains; as reported by State Level Bankers’ Committee (SLBC), Maharashtra,
(b) Reserve Bank of India (RBI) has issued Master Directions on 17 October 2018 on relief
measures by banks in areas affected by natural calamities which inter-alia provides
restructuring of loans without downgrade in asset classification and sanctioning of fresh loans,in the event of natural calamities declared by State/Central Government. In this regard, as
reported by the SLBC, Maharashtra, Government of Maharashtra vide letter dated 26.11.2025
has declared natural calamity in the state and Banks in the state have been advised by SLBC to
adhere to the RBI Guidelines on Relief Measures in areas affected by natural calamities.
(c) and (d) On receipt of communication dated 26.11.2025 from Government of Maharashtra
about declaration of natural calamity in the state, SLBC, Maharashtra has informed all its
member Banks to restructure eligible crop loans & adjourn loan recovery from rain affected
farmers as per RBI guidelines. As per information received from member banks by SLBC,
Maharashtra, 17.29 lakh eligible accounts amounting to ₹26,658.77 crore have been identified
for restructuring/rephasement.
Further, Para 2(v) of the Modified Interest Subvention Scheme (MISS) Guidelines provides
that the applicable rate of interest subvention for this year will be made available to banks for
the first year on the restructured loan amount. Such restructured loans will attract normal rate
of interest from the second year onwards.
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