Posted on: January 2, 2017

PM Modi’s New Year Address: Key Takeaways

PM announcement
On New Year’s Eve, Prime Minister Modi addressed the nation to discuss the path ahead, post demonetization. While he thanked people for supporting his decision to ban the 500- and 1000-rupee notes, he also announced several financial measures. Here are the key highlights from his address:
 
  • To enable poor people to purchase houses, new measures have been introduced under the Prime Minister Aawas Yojana (PMAY)

     

    • A 3% interest waiver will be offeredon loans up to Rs 2 lakhs taken for construction of a new house or for renovating an existing one
    • 33% more houses will be built in rural areas

 

  • PM also announced interest waivers for urban sector housing loans:

     

    • Interest relief of 4% for loans up to Rs 9 lakhs
    • Interest relief of 3% for loans up to Rs 12 lakhs

 

  • A number of schemes were announced for the agricultural sector:
  • Interest for 60 days will be borne by the government for the loans taken by farmers from district cooperative banks and societies
  • NABARD will get Rs 20, 000 crores from the Government to give loans at low interest rates to the farmers
  • 3 croresKisan Credit Cards will be converted to Rupay Cards in three months
 
  • For the micro, small and medium scale industries, measures included:

     

    • Increase in cash credit limit to 25% from 20% for small businesses
    • Credit guarantee for small entrepreneurs to be doubled to Rs 2 crores from Rs 1 crore, loans from NBFCs will also be covered under this.
    • To boost digital economy, tax calculations for small entrepreneurs will be reduced to 6% from 8%

 

  • For senior citizens and ladies:
  • Senior citizens will be assured 8% interest rates on all deposits of up to Rs. 7.5 lakhs for 10 years.
  • All pregnant ladies will receive assistance of Rs.6000 for their delivery, vaccination and nutritious meals so as to reduce mortality rate.
 
Apart from this, the PM talked about ensuring normalcy in the banking system at the earliest and motivated people to use the recently launched BHIM app as much as possible.

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