Keeping up its poll promise, the Telangana Government has issued an order for waiving the farm loans up to ₹1 lakh in the State.
The loan waiver burden to the State exchequer is expected to be about ₹19,000 crore. The Government would form the modalities for the implementation of the waiver.
The public sector banks have been serving notices to farmers in the State. But the farmers were in a fix as there was no assurance from the Government on the actual implementation of the loan waiver scheme.
Loan waiver scheme was one of the major promises made by TRS President K Chandrasekhara Rao before the elections. The Reserve Bank of India (RBI) reportedly agreed to let the bank reschedule loans in three districts.
This might act as a cushion for the State Government as it could focus on the remaining districts to waive the loans.