Harish Rao asks banks to extend loan waiver to farmers without cuts

To monitor the loan waiver disbursement and farm loan renewal mechanism, a task force committee, comprising representatives from finance and agriculture departments and banking officials would be established.

Hyderabad: Finance Minister T Harish Rao has directed banks not to adjust the other loans, including personal or home loans arrears of farmers’ from their bank accounts and extend the State government’s farm loan waiver amount to them without any deductions.

To monitor the loan waiver disbursement and farm loan renewal mechanism, a task force committee, comprising representatives from finance and agriculture departments and banking officials would be established.

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This committee would convene weekly meetings to oversee fund disbursement to farmers, fostering transparency and accountability, the Finance Minister said here on Monday.

Speaking at a State-level bankers meeting, the Minister said Telangana was the only State in the country to have waived farmers’ loans twice. Chief Minister K Chandrashekhar Rao had spearheaded this movement by championing the cause of farmers and bolstering the agriculture sector’s growth.

As per the Chief Minister’s directions, a substantial amount of Rs.8,098 crore has been allocated to 16.66 lakh farmers, accounting for 99,999 outstanding loans. A comprehensive process was underway to waive loans totaling Rs. 20,141 crore for 37 lakh farmers, he said.

“Banks should disburse the loan waiver amount to the farmers without adjusting the other loan payments,” Harish Rao said.

Despite the economic challenges posed by the pandemic, the Chief Minister remained steadfast in his commitment to farmers’ welfare. The government urges banks to comprehend this noble intention and extend their cooperation. This collective effort aims to expedite the loan waiver procedure and ensure that farmers derive the maximum benefit from this endeavor, he said.

Farmers, who may have multiple accounts, have been advised to consider distributing the funds across various accounts, ensuring widespread access to the government’s financial support.

Agriculture Minister S Niranjan Reddy explained the pivotal role agriculture sector plays in Telangana’s economic landscape, with agriculture contributing 18 percent to the Gross State Domestic Product (GSDP).

He emphasized that the circulation of currency amongst citizens in Telangana was notably higher compared to other States, attributing this phenomenon to the government’s strategic financial assistance initiatives.

Bank officials should provide unwavering support to ensure the seamless execution of the loan waiver programme, he added.