RBI gives green signal for loan re-schedule for the State
July 16, 2014 - Hyderabad
The Reserve Bank of India (RBI) while according permission for re-scheduling of crop loans proposal of Telangana and Andhra Pradesh Government sought information on the quantum and the number of beneficiaries likely to be benefitted by the moratorium.
In a letter addressed to the Chief Secretaries of the respective governments, it is learnt that the RBI wanted to limit the repayment period to three years as against the Andhra Pradesh government for a moratorium of seven years. According to sources, RBI sought precise information since one person could have two to three loans and in such a case, a decision would have to be taken on rescheduling either one or two loans. Sources said that an extent of Rs.30,000 crore crop loans and Rs.20,000 DWCRA, weaver and other loans would have to be rescheduled.
AP Chief Minister Chandrababu Naidu said at Dwaraka Tirumala that he has announced the loan waiver to build confidence among the farmers and the government is committed to implement it. He said that the government is striving hard for the last 40 days to make the promise a reality. He said that the government is speaking with RBI Governor, Prime Minister and the Home Minister on the issue. The Kotaiah committee appointed on loan waiver has to submit its report.
Chandrababu Naidu said that interest burden of 12 per cent will be borne by the government. He assured that loan waiver will also be applicable to those who repaid the loans and added that a loan a house would be implemented.