RBI stops Andhra from giv­ing loan re­lief to farm­ers

Down to Earth - - THE FORTNIGHT - ANDHRA PRADESH'S

new gov­ern­ment will find it dif­fi­cult to ful­fil its prom­ise of a loan waiver to farm­ers. RBI has said it sees no rea­son for the state gov­ern­ment to waive or reschd­ule the loans availed by farm­ers. It said that af­ter in­de­pen­dently ver­i­fy­ing the of­fi­cial data on farm yields.

Over ` 87,000 crore worth of farm loans is over­due in the state . RBI's ex­ec­u­tive direc­tor Deepali Pant wrote in a let­ter to the state sec­re­tary, "It does not ap­pear fea­si­ble for us to con­clude that dis­tress is wide­spread, war­rant­ing reschedul­ing of loans in the form and man­ner in which it has been asked for."

MOYNA / CSE

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