Funds should be utilized only for crop loan waiver, Bhatti instructs banks

At a meeting with bankers here on Thursday, he said Rs.31,000 crore would be released before the end of August towards the crop loan waiver

Hyderabad: Deputy Chief Minister Bhatti Vikramarka Mallu on Thursday instructed banks that funds released for the crop loan waiver should be utilised exclusively for the purpose and should not be adjusted for any other loans.

At a meeting with bankers here on Thursday, he said Rs.31,000 crore would be released before the end of August towards the crop loan waiver. Regarding farmers with loans of over Rs.2 lakh, bankers should talk to them and recover the amount over Rs 2 lakh. The amount to be released by the government should be used to ensure that no farmer owed a loan to the bank, he said.

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This was the first time in Indian banking history that such a huge amount would be recovered at one go. Even in the corporate banking sector, such huge amount was never recovered by banks at one go, he said.

The Deputy Chief Minister said the agriculture sector contributed 16.5 percent to the State GSDP and over 45 per cent of people were dependent on the agriculture sector.

“After crediting the funds sanctioned under the crop loan waiver, bankers should immediately sanction loans to farmers for their future requirements,” Bhatti Vikramarka said, adding that there should not be any apathy in sanctioning loans to farmers and the lead bank should play the role of a big brother.