- Telengana Government tried hard to convince Reserve Bank of India on corp loan waiver, sfforts were in vain as apex banks have denied the request
- The waiver would directly affect the liquidity of the banks and repayment will also be affected, RBI officials have not assured the request of rescheduling crop loans
- Most often farmers in repayment and renewal of crop loans and agricultural term loans anticipating a debt waiver which is unhealthy for the banks
- Due to this banks were unable to recycle the funds owing to non-repayment of loans and mounting over dues
- Outstanding loans as on March 31 were Rs.17, 000 crore, since RBI has denied waiver government has requested the apex bank to reschedule crop loans
- Around 337 mandals have been affected because of the Phailin cyclone last year and rescheduling of loans will give time to repay the loans State and farmers will get time for 1 year and the loan can be repaid over a period of four to seven years
- RBI has received clearance for the loan waiver from AP government which is in vain, the government is hoping for RBI’s clearance for rescheduling of crop loans in drought and cyclone affected 575 mandals
- Read at: http://www.thehindu.com/todays-paper/crop-loans-rbi-coldshoulders-tstate/article6179281.ece