kcr-cbn-rbi

Finally Reserve Bank of India had agreed for Loan Rescheduling in Andhra Pradesh and Telangana states. While both the states have asked for 7 years of reschedule, the apex bank had agreed only for 3 years. This is not the only disappointment in RBI’s proposal. There are several other things which will not make the government or people as much as happy as they would like.

1. The loan rescheduling will be applicable only for the loans taken between April 1st 2013 and 27th October 2013.
2. This will not be applicable to the gold loans taken by the farmers.
3. This rescheduling will be applicable only those mandals or districts prone to natural disasters and drought. These were already announced by the government.
4. At the time of rescheduling, the farmers should have paid remaining loans in time.
5. Till the loans are repaid by the government, the loans will be still in Farmer’s name.

Given the above rules, the beneficiaries will be very less and the amount will be less than 10000 Crores. Andhra Pradesh government is planning to write a letter to RBI to relax some of the rules so as to benefit more number of people. Telangana government is yet to decide its future course of action.