Reserve Bank of India (RBI) has tightened the screws of loan rescheduling of crop loans in Andhra Pradesh. The apex bank suspects the government is trying to facilitate loan waiver with this rescheduling. On the other side, RBI reportedly has written a letter to Andhra Pradesh government that for rescheduling, the crop yield in th affected areas should lessen by 50%. RBI has got the crop yield details for the last 4 years and has not found major impact to carry out the loan rescheduling.
RBI has asked the government to submit crop yield details of all the affected mandals to pursue the loan waiver further. RBI further found that there is money in the savings accounts of the farmers and they are not paying the loans with expectation of the loan waiver. Since the farmers are not in a position of failing to repay loans, RBI has questioned the government why it has to permit the loan waiver. Government will very soon send a detailed answer to all the questions raised by RBI.
Loan Waiver for farmers and women self help groups is one of the prime poll promises of Telugu Desam Party and now the party is under pressure to deliver it so as to improve its credibility in people. It is known that Chandra Babu announced 1.5 Lakhs Loan Waiver per family which will make about 97% of the families debt free.