New Delhi, July 27
Making an important announcement, Prime Minister Atal Bihari Vajpayee today said his government had asked banks not to charge more than the prime lending rate (PLR) for agriculture loans up to Rs 2 lakh.

Commenting on Union Agriculture Minister Rajnath Singh’s description of the Centre’s “unprecedented” step to reduce interest rates on agriculture loans, Mr Vajpayee said his government would continue to take “many more such ‘unprecedented' steps”.

Addressing farmers who had gathered at his residence to thank him for reducing interest rates on agricultural loans, Mr Vajpayee said to ensure that farmers “actually” benefit from the interest rate cuts, ‘nigrani’ (monitoring) committees must be set up at the lower levels.

He said the government had already announced to reduce interest rates on agriculture loans up to Rs 50,000 at 9 per cent from 14-18 per cent.

The Reserve Bank of India and the bank associations have already agreed to keep the interest on agriculture loans up to Rs 50,000 at a single digit. Seeking further relief for the farmers, the Centre had now asked banks not to charge more than PLR for agriculture loans up to Rs 2 lakh.