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The RBI on Wednesday accorded ‘in-principle’ nod for a crop loan reschedule request made by Andhra Pradesh and Telangana while seeking additional information from both the governments.
In a communication to both States it has requested details of farm loan debtors, modalities for loan rescheduling and whether they will be able to repay the loans over the next three years. The communication comes following a telephonic interaction Chief Minister N Chandrababu Naidu had with RBI Governor Raghuram Rajan earlier on Wedenesday.
The RBI communication to both States is being seen as a major relief to the debt-hit farm community, whose prospects of securing new loans is also under concern.
New loans As opposed to the seven years of rescheduling requested by AP, the RBI has approved it for three years.
Kutumba Rao C, Deputy Planning Chairman in Andhra Pradesh, said the RBI’s communication was an in-principle nod for loan rescheduling. The details sought by the the central bank would be sent to it by Thursday.
In AP, priority sector advances stood at ₹1,37,250 crore as on March 2014, of which agricultural advances were ₹7,612 crore.
In Telangana, the Government had indicated a crop loan waiver of about ₹20,000 crore, covering loans of up to ₹1 lakh.
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