Confidential Government sources have stated that the Reserve Bank of India may not agree for the farmers loans reschedule proposal put forth by Andhra Pradesh government. The main reason behind this rejection is due to Maharashtra government. It is said that the state government is keenly observing the developments in both the Telugu states regarding the loans rescheduling so that they can promise the loan waiver for their upcoming Assembly elections. So, RBI is not at all interested in encouraging this culture which will ruin the banking culture in the country.
It is said that banks will not give loans to farmers this Kharif season unless the government or farmers repay the loans. We are said that banks have put up an option of government asking the farmers to repay the loans. The waived loan amounts will be later repaid to farmers by the government – 20% per year until the end of Chandra Babu Naidu’s government tenure.