NABARD Grade A Current Affairs — 2 June 2026

Tamil Nadu farmers demand improved loan waiver scheme after NABARD's November 2025 revised regulations restricted state government's ability to write off agricultural loans without prior approval. Current state scheme covers only partial debt relief, leaving farmers with substantial outstanding amounts. Protests intensifying as monsoon season approaches, with farmer unions threatening statewide agitation. State government exploring alternative relief mechanisms within NABARD's new regulatory framework for cooperative credit societies.

NABARD's November 2025 regulatory overhaul fundamentally altered state governments' autonomy in implementing farm loan waivers, requiring explicit central approval for debt write-offs exceeding specified thresholds. Tamil Nadu's existing waiver scheme, designed to provide relief to drought-affected farmers, now faces implementation challenges as it must comply with new prudential norms for cooperative banks and primary agricultural credit societies. The revised regulations aim to prevent moral hazard and ensure financial discipline in the cooperative credit system, but create immediate hardship for farmers expecting comprehensive debt relief. This reflects broader tensions between fiscal populism and banking sector stability. The state's agricultural credit portfolio, heavily dependent on cooperative societies and regional rural banks, faces scrutiny under enhanced monitoring mechanisms. Farmers argue that partial waivers fail to address systemic distress caused by consecutive crop failures, input cost inflation, and market price volatility. The situation highlights the complex interplay between state-level political promises, central banking regulations, and ground-level agricultural realities that NABARD Grade A aspirants must understand to analyze rural credit dynamics effectively.