Hyderabad: The postponement of distribution of cheques to farmers under the Rythu Bandhu scheme (investment subsidy to farmers) has come as a blessing to banks that are reeling under a severe cash crunch.
After days of uncertainty, Chief Minister K. Chandrasekhar Rao on Monday put off payment of cheques to farmers from April 19 to May 10. The Reserve Bank of India (RBI) had released Rs 2,000 crore to the banks for the purpose of the farmers’ investment subsidy scheme and the money was not to be used for any other purpose the RBI had stipulated.
According to an earlier schedule, the TS government was to distribute 58 lakh cheques in three phases starting from April 19. Thanks to the postponement, the RBI is now allowing the banks to use the money released for the farmer subsidy for regular purposes.
Almost all banks in the state are facing sho-rtage of currency and ATMs across the state are running dry, so the latest development is a big help for banks and their customers.
The state government will distribute all the 58 lakh cheques in a single phase starting May 10 and continue for a week. The RBI now has to release Rs 5,246 crore at a time and the officials say the central bank has promised to do so. If the funds are not available with the banks, the amount will be deposited in the farmers’ accounts, the officials said.