State Level Bankers’ Committee said that loans only up to Rs1 lakh will be rescheduled
Telangana state orders to waive farm loans up to Rs one lakh (Photo: PTI/file)
Hyderabad: While the Andhra Pradesh government had said it would waive farm loans up to Rs 1.5 lakh the State Level Bankers’ Committee in its circular to all the banks in four districts said that loans only up to Rs 1 lakh will be rescheduled.
A copy of the lead bank letter to all the banks issued two days ago is available with this newspaper. “The eligible amount for rescheduling would be limited to the amount of crop loan together with applicable interest, which was disbursed between April and October 2013 as of March 31, 2014, or Rs 1 lakh per farmer, whichever is lower,” said the SLBC order.
This is another setback for the government and farmers, who are already protesting restricting it to only four districts. The instructions include that right to recover after three years of rescheduling period lies with the banks and farmers have to pay the interest.
The SLBC said rescheduling will be limited to a period of three years, comprising one year moratorium and two years rescheduling. It said banks will not forgo the right to recovery from farmers if the loan remains overdue after the period of three years has lapsed.
In the letter SLBC convener C. Doraswamy said, “RBI is agreeable to allow rescheduling of some farm loans. Based on the criteria, rescheduling is restricted to four districts of Srikakulam, Vizainagaram, Nellore and Krishna, and it will be over only loans extended by commercial banks, cooperative banks and Regional Rural Banks.”
( Source : dc correspondent )
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