RBI gives conditional nod for reschedule of loans
August 9, 2014 - Hyderabad
The RBI has given permission for reschedule of loans in 120 mandals in four districts with conditions. RBI Executive Director Dr. (Mrs) Deepali Panth Joshi in a letter to the State Government informed of the same. It may be recalled that the State Government has written for 653 mandals that were declared as drought prone and requested the RBI to reschedule loans in 575 mandals. The RBI took cognizance of the statistics furnished by the AP State Government has permitted for reschedule of loans.
RBI said that the reschedule of loans will not be applicable to
• Gold loans taken for agricultural purposes
• Crop pledged
• Sugarcane and tobacco
The reschedule of loans will be applicable to those taken in Srikakulam, Viziangaram, Nellore and Krishna districts through commercial banks, cooperative banks and National Rural banks. The reschedule is applicable to only short term loans and is confined to three years term with the first year moratorium and reschedule for the rest of the two years. If the loans are not paid, the bank will recover from the farmers. The loans taken in between April to October only, the reschedule will apply and the loan reschedule is up to a maximum of Rs.1 lakh. Any amount in excess of the cap, the government has to pay to the bank directly for the credit of borrowers’ account, said RBI.