The cancellation of currency notes with effect from 9 November led to a severe cash shortage, especially in rural areas. ALSO READ | Budget 2017: Arun Jaitley likely to take the stimulus route to economic growthAlthough all district cooperative societies are computerized, PACSs, which form the lowest tier, are still to go online, the official said. Under this so-called interest subvention scheme, banks extend loans up to Rs3 lakh to farmers at a concessional interest rate of 7%. The farmers get a further 3-percentage point discount for timely repayment, making the effective interest rate 4%. The sops for the farmers in the Union budget to be presented on 1 February will come weeks before crucial state elections in Uttar Pradesh, Punjab, Goa, Uttarakhand and Manipur.

Source: Mint January 22, 2017 23:45 UTC