RBI to put off crop loans for Andhra Pradesh and Telangana for 3 years
17 July 2014 3:55 AM GMT
Rescheduling will be confined only to loans obtained for Kharif 2013-14 in both states
Picture for representational purpose (Photo: DC archives)
Hyderabad: In a huge relief to Chief Ministers N. Chandrababu Naidu and K. Chandrasekhar Rao, the Reserve Bank of India has written to the Andhra Pradesh and Telangana state governments expressing its willingness to consider rescheduling crop loans, but only for three years including a-one year moratorium.
The rescheduling will be confined only to loans obtained for Kharif 2013-14 by farmers of both the states.
The RBI has also indicated that the rescheduling was likely to be made applicable to farmers of only drought and cyclone hit mandals.
The apex bank has also asked both the state governments whether they would be able to repay the rescheduled loans along with interest in the three year period.
“The RBI has asked AP and Telangana to submit all the details about the number of farmers and category of loans availed and how it proposes to implement the loan reschedule and repayment mode,” said sources.
Officials engaged in the loan waiver and reschedulement exercise in both the governments said that the banking regulator had also made it clear to the governments that the gold loans, even if taken for agriculture purposes, may not be considered under the rescheduling scheme.
( Source : dc )
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