The CM also said that a loan waiver procedure will be implemented, and fresh loans will also be extended to farmers.

Ktaka CM holds meeting with banks says govt preparing blueprint for farm loan waiverFIle image
news Farm Loan waiver Wednesday, July 25, 2018 - 10:09

Karnataka Chief Minister HD Kumaraswamy on Tuesday said that the government is forming a blueprint to waive farm loans to the tune of ₹48,000 crores from both the cooperative sector and nationalised banks. The announcement was made after a high level meeting between the state government and nationalised banks regarding the waiver of farm loans.

The CM also said that a loan waiver procedure will be implemented, and fresh loans will also be extended to farmers. He added that this was possible because of the cooperation by the officers of the nationalised banks. Kumaraswamy further said that the officers of the banks have assured him that they would seek and get the permission from their respective Board of Directors after appraising them of the current scenario.

A report in The New Indian Express states that the banks have accepted the government’s plan of paying reimbursements in four installments. Further, the report states that two sub-committees of bankers and government representatives will be formed to work out the arrangements.

According to TNIE, the sub-committee will consist of members of all the banks and government officials to plan out a way to implement the farm loan waiver.

HD Kumaraswamy said, “Total loan of Rs 37,159 crore from nationalised banks, Rs 9,448 crore fresh running loans, incentive for loan accounts, pending reimbursement of Rs 4,000 crore for waiver announced by the previous government comes up to about Rs 48,000 crore.”

The Chief Minister also said that the banks would prepare the statistics and details of eligible loans would suit them along with the digital signature to the Government

He also requested farmers not to resort to extreme measure like suicide.

Topic tags,
Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.