The Kotayya Committee appointed to suggest the procedure of Loan Waiver in Andhra Pradesh has met Reserve Bank of India officials on Tuesday. They reportedly explained that Loan Waiver is not announced by Chandra Babu for political gains but it is definitely needed to help farmers. They also explained how farmers in Andhra Pradesh are committing more suicides than in any other states.
RBI governor Raghu Rama Rajan has agreed with the government’s thought to help farmers but explained the committee members that these program will destroy the banking structure. He explained them that if RBI helps AP in this aspect, political parties in Maharashtra and Punjab who will be going for elections will also give loan waiver promise. Rajan also asked them about the source of money for the loan waiver and the committee explained their plans like selling seized Red Sandal in International markets, issuing bonds etc.
The Committee asked Rajan to help in rescheduling the loans in to long term loans so that government can clear them in agreed time frame. It is said that Rajan sounded hopeful of helping in rescheduling of loans and asked the committee to come up with a proposal regarding the same.