The Reserve Bank of India has accorded in-principle nod to the proposals of Andhra Pradesh and Telangana governments to reschedule crop loans but sought detailed information from both the States on the quantum and the number of beneficiaries likely to be benefited by the moratorium.
In principle, they have agreed for rescheduling and requested for additional information, official sources confirmed here on Wednesday. The Andhra Pradesh government has decided to send the details to RBI by Wednesday night itself, the sources indicated.
It is learnt that the RBI in a letter addressed to respective Chief Secretaries sought to know the number of beneficiaries to be covered under the scheme to reschedule crop loans, the quantum of loans to be rescheduled and the number of such accounts. It is learnt that the RBI wanted to limit the repayment period to three years as against AP government demand for a moratorium of seven years.
In particular, the RBI is believed to have requested for village-wise and mandal-wise information from the governments. An official source said the RBI sought precise information since one person could have two to three loans. In such a situation, a decision would have to be taken on rescheduling either one or two loans.
Following the receipt of the letter, Andhra Pradesh Finance Minister Yanamala Ramakrishnudu held a meeting with senior officials of the Finance Department to discuss and finalise the details to be furnished to the RBI.
While Andhra Pradesh and Telangana governments have announced that crop loans would be waived, the RBI as of now has agreed only for rescheduling them. However, there is no clarity on details regarding the period to be covered by rescheduling.
According to estimates, the crop loans in Andhra Pradesh were to the extent of Rs.30,000 crore, while DWCRA , weavers and other loans would run into over Rs.20,000 crore.
In Telangana, the ruling party committed itself for farm loan waiver with a cap of Rs one lakh and the burden is expected to be around Rs 19,000 crore.
