In the first favorable indication to the crop loan waiver scheme of Telangana and Andhra Pradesh Governments, the Reserve Bank of India on Wednesday wrote to both the Governments asking whether they were willing to clear the rescheduled loans in three years period.
The letter, sent to both the State Governments on Wednesday, the RBI said that if they agree to three-year loan rescheduling, it will approve the crop loan waiver scheme. The RBI also asked both the State Governments to send a detailed report on the framework of the rescheduling of loans.
Both, the TRS in Telangana and Telugu Desam Party in Andhra Pradesh had made an election promise to waive the crop loans but even after one and a half months after coming to power in the respective States, they could not proceed because of the roadblock of RBI. Both the State Governments were coming under pressure form the farmers as well as the Opposition parties to fulfill their promise. The two State Governments have offered to repay the waived loan to the banks over a period of time.
The apex bank had expressed its serious reservations over the crippling impact of such schemes on the banks. Andhra Pradesh has asked seven year period for the repayment of loans. Soon after receiving the communication from RBI, top officials of finance department of Andhra Pradesh Government went in to a huddle at the State Secretariat.
Financial adviser to Andhra Pradesh Government Kutumba Rao said that the letter had reached this morning and the State Government will reply soon. “We have asked the State level bankers’ committee to provide the details of the loans and will write to RBI with the details of rescheduling”, he said. Meanwhile Andhra Pradesh Chief Minister N Chandrababu Naidu, who was on a visit to West Godavari district reiterated his promise that one crop loan in each family will be waived.