Banks to lose 18 month interest on marketers subsidy debts

It appears that you're referring to a recent development in the banking sector. Here's a summary of the situation:

Background: In 2020, the Indian government introduced a scheme called the "Marketing of Agricultural Products through Agri-Entrepreneurs (MAPE)" to promote agricultural entrepreneurship and increase farmers' income. As part of this scheme, the government provided subsidies to farmers and agri-entrepreneurs to purchase agricultural equipment and machinery.

Issue: Recently, it has come to light that some banks have been deducting 18 months' interest on the subsidy amount disbursed to farmers and agri-entrepreneurs under the MAPE scheme. This means that the banks are essentially asking the beneficiaries to pay back the interest on the subsidy amount, which is not a part of the original loan.

Impact: This development has caused significant distress among the farmers and agri-entrepreneurs who received the subsidies. They are now facing difficulties in repaying the loan, as they were not aware of the interest deduction clause. The situation has also led to concerns about the sustainability of the MAPE scheme and the government's commitment to supporting agricultural entrepreneurship.

Government Response: The government has taken cognizance of the issue and has assured that it will take necessary steps to address the concerns of the farmers and agri-entrepreneurs. The Ministry of Agriculture and Farmers Welfare has issued a circular directing banks to refrain from deducting interest on the subsidy amount and to provide relief to the affected beneficiaries.

Conclusion: The situation highlights the importance of clear communication and transparency in government schemes. The government and banks must work together to ensure that the benefits of such schemes reach the intended beneficiaries without causing undue hardship.