Telangana government was default in settling of the loan waiver amount to the banks in the first installment itself. The government was supposed to disburse 4250 Crores to the accounts of banks across the nine districts of Telangana by Friday but the government failed to do so. Officials say the beneficiaries list is ready in five districts and so the government stopped remitting the amount. On the other side the bankers turned down these reasons.
They now categorically stated to the government that the farmers will lose crop insurance if the amount is not settled before September 30th. They issued a final ultimatum to the government that the loans for the upcoming Rabi season will not be issued to the defaulted accounts from October 1st. Agriculture minister Pocharam Srinivas Reddy will be meeting the State Level Bankers Council on Sunday to ensure the banks issue fresh loans to farmers in October.
