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Chandigarh: Punjab State Level Bankers Committee(SLBC) Task Force meeting today in Chandigarh will operationalise major banking relief for flood-affected farmers across Punjab, enabling them to access fresh crop loans without first repaying previous dues and granting extended moratoriums on term loans taken during the last kharif marketing season.
Flood-affected farmers from 1,695 villages can avail new crop loans on the same mortgaged land and at the same scale of finance, provided their loan accounts were regular (no default) up to August 28, 2025, which has been officially notified as the date of the natural calamity. Instructions to this effect have been issued by the Reserve Bank of India to all banks operating in the state.
Punjab had 24.40 lakh crop loan accounts as of September 30, 2025, with outstanding crop loans totalling ₹64,572.56 crore. Following one of the most devastating floods in recent years, crops over 4.27 lakh acres were damaged across 22 of the state’s 23 districts (barring Fatehgarh Sahib). The worst-hit districts include Amritsar, Gurdaspur, Tarn Taran, Hoshiarpur, Kapurthala, Fazilka and Ferozepur.
To ensure swift implementation, the SLBC has constituted a dedicated task force to oversee fresh loan disbursals. The first meeting of the SLBC Task Force is scheduled for today, said RK Meena, adding that nearly three lakh farmers are expected to benefit from the relief package.
In addition to fresh crop loans, flood-affected farmers with term loans will receive repayment relief through extended moratoriums. Farmers who suffered 33–50% crop damage will get a two-year extension, while those with over 50% losses will receive a five-year extension. Overall, term loans amounting to ₹23,136.64 crore have been extended to 10.84 lakh farmers in the state.
Relief measures are also expected to cover MSMEs (micro, small and medium enterprises) located in flood-affected areas. Units that suffered more than 33% damage due to floods are likely to be granted moratoriums on their term loans as well. Banking officials said the SLBC Task Force meeting today will focus on uniform interpretation of RBI guidelines, faster credit flow, and close monitoring to ensure timely relief reaches all eligible farmers and enterprises.
