Farm loan waiver payments should be given directly to farmers, not bank accounts: Harish Rao
Harish Rao, who was addressing the meeting of the State Level Bankers Committee said, Telangana is the only state in the country that has waived farm loans twice
HYDERABAD: Other states in the country have imposed many restrictions on loan waivers, but KCR is the only Chief Minister who has carried out loan waivers without any condition and given top priority to the welfare of farmers and agriculture in Telangana state, Finance Minister Harish Rao said on Monday.
Harish Rao, who was addressing the meeting of the State Level Bankers Committee at Hotel Vivanta in Begumpet, said "Telangana is the only state in the country that has waived farm loans twice. The money for agricultural loan waivers should not go into bank accounts but into the hands of farmers. Banks should cooperate so that the loan waiver can be processed expeditiously and farmers can benefit."
Harish Rao said that based on Chief Minister KCR's instructions, Rs 16,144 crores were waived for 35 lakh farmers in the first phase. As many as 16.66 lakh farmers were given Rs 8,098 crores in the second phase, while the process of waiving loans of Rs. 20,141 crore to 37 lakh farmers was underway.
He said farmers with outstanding loans should receive loan waiver money directly from banks, without depositing it under old debt. If the farmer has already paid off the loan, the waived money should be given directly to the farmers. If the crop loan is not paid, it should be waived.
Farmers with multiple accounts in cooperative and national banks should keep both accounts active to ensure they received government-provided funds, said Harish Rao.
A task force comprising finance and agriculture department secretaries and banking sector representatives, would be formed to oversee loan waiver and renewal processes, monitoring farmers' financial status on a weekly basis.
"Even though the state's revenue has decreased due to Corona, Chief Minister KCR is implementing the waiver with the intention to help farmers. Banks should recognise this and cooperate. Farmers are reassured by schemes like Rythu Bandhu, Rythu Bima, and 24 hours of free electricity. They will be more happy if the loan waiver money is given directly to them, " said Harish Rao