5 key highlights of PM Narendra Modi's new schemes, incentives announced on New Year's Eve

Prime Minister Narendra Modi after completion of 50-day demonetisation window announced a series of incentives to senior citizens, farmers, women, and small businesses during his New Year's Eve address to the nation on Saturday. 

"Corruption, black money, fake notes had become so rampant in India’s social fabric that even honest people were brought to their knees," the Prime Minister Office (PMO) tweeted PM Modi as saying. 

Corruption, black money, fake notes had become so rampant in India’s social fabric that even honest people were brought to their knees: PM

— PMO India (@PMOIndia) December 31, 2016

During the speech, he announced major decisions to benefit poor, neo-middle class and middle class. 

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"On the eve of the new year, Government is bringing some new programmes for the people," the PMO Office tweeted the prime minister as saying

Here are key highlights of new schemes and incentives announced by PM Modi: 

1. To ensure senior citizens do not face impact of reduced interest rates, he announced new scheme wherein senior citizens will receive a fixed interest rate of 8% for a period of 10 years on deposits of upto Rs 7.5 lakh and the interest will be paid monthly.

2. To boost agriculture, he said farmers who have taken loans for Rabi crop will be exempted from interest for 60 days. The government added Rs 20,000 crore to National Bank For Agricultural and Rural Developement (NABARD) fund to ensure cheap credit to farmers. Moreover, the government will upgrade 3 crore Kisan Credit Cards to RuPay debit cards.

3. To reduce maternal mortality rate, he announced nation-wide new scheme inorder to boost maternal and child health. The government will transfer Rs 6,000 directly to the bank accounts of pregnant women who undergo institutional delivery and vaccinate their children.

4. To keep up with his committment on 'Housing for All', he announced interest subvention for loans upto Rs 12 lakh. Under the Pradhan Mantri Awaas Yojana in urban areas, home loans of up to Rs 9 lakh will receive interest subvention of 4% while loans of up to Rs 12 lakh taken in 2017 will receive interest subvention of 3%. Similarly, loans of up to Rs 2 lakh taken in 2017 for new housing or extension of housing in rural areas will receive interest subvention of 3%.

5. In order to increase access to credit for small and medium-sized enterprises, he said the government will under-write loans given by Non-banking Financial Companies (NBFCs). It has asked banks to raise credit limit for small industry from 20% of turnover to 25%. Besides, the government has asked banks to increase working capital loans from 20% of turnover to 30% for enterprises that transact digitally.

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