Bengaluru, Sep 16: In a significant step towards supporting farmers affected by the prevailing drought conditions in Karnataka, the State Level Bankers’ Committee , Karnataka convened a Special Meeting on 10 September 2026 to deliberate on relief measures for drought-affected borrowers. The meeting was chaired by Smt. Uma Mahadevan, Additional Chief Secretary & Development Commissioner, Government of Karnataka, with participation of Smt. Kaya Tripathi, Regional Director, Reserve Bank of India, Bengaluru, Dr. Vishal R, Secretary, Fiscal Reforms, Finance Department, GoK, NABARD, senior officials of the State Government, and member banks.
The meeting assumes importance following the Government of Karnataka’s declaration of drought in 101 taluks spread across 24 districts, including 89 severely affected taluks and 12 moderately affected taluks.
Key Relief Measures Approved
The banking sector has agreed in principle to implement a comprehensive relief package for eligible borrowers of agriculture and allied activity in accordance with RBI guidelines:
- 12-month moratorium on loan repayments.
- Repayment period extended up to 36 months in moderately affected taluks and
- 60 months in severely affected taluks.
- Coverage of Kisan Credit Card loans, investment credit, dairy, fisheries, sericulture and other allied activities.
- Provision of fresh need-based credit support to eligible farmers to ensure continuity of agricultural operations and livelihood activities.
Banks have been advised to invoke the relief measures by 11 October 2026 and complete implementation by 09 January 2027.
Addressing the meeting, the Additional Chief Secretary & Development Commissioner emphasized that the objective of the relief package is to ensure that drought-affected farmers receive timely financial support and are protected from distress during the current agricultural season.
“The Government of Karnataka and the banking sector must work in close coordination to ensure that every eligible farmer receives the benefit of the restructuring package and fresh credit support. Farmer welfare remains our highest priority, and district administrations have been directed to facilitate speedy implementation and grievance redressal.”
The Chair also stressed a humanitarian approach towards affected borrowers and directed that there should be sympathetic view during the drought period.
Speaking on the occasion, Shri. Shreenath Joshi, Convenor, SLBC Karnataka reiterated that
“Banks across Karnataka are committed to implementing the relief package in a transparent, timely and farmer-friendly manner. The objective is not merely to defer repayments but also to ensure continued flow of institutional credit so that farmers can sustain agricultural and allied activities despite the drought situation.”