RBI’s questions on farm loans worry state

Hyderabad:  While the Andhra Pradesh government is in a hurry to reschedule crop loans, the Reserve Bank of India is raising queries leading to delay. The state government is disgusted with the RBI’s attitude.
The AP government has decided to write a letter to RBI to provide exemption and announce that 372 mandals were affected by cyclones, heavy rains and drought.

If RBI accepts this, then crop loans taken by the farmers in these mandals will be rescheduled automatically. The finance department officials are drafting the letter and it will send it to the RBI on Saturday or on Monday.

The government will inform the RBI that the farmers have already started cultivation and they need money to continue their agriculture operations.

Meanwhile, the RBI is posing questions to its Hyderabad branch to send details with regard to waiver of crop loans. A few days ago RBI had asked its Hyderabad branch to send mandal-wise crop yield in Andhra Pradesh.

Now, the RBI has asked the Hyderabad branch to send mandal-wise loan disbursement to the farmers with their account numbers and quantum of loan they have taken, including from co-operative and rural banks.

But, as many banks in villages are still not computerised, mandal-wise details of loans are not available, said an official of finance department.