RBI stops Andhra from giving loan relief to farmers
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."