Bankers turns down Naidu's appeal - TeluguPeople.com News

Hyderabad: The State-level Bankers Committee (SLBC) meeting that was held with the Government of Andhra Pradesh to discuss the issue of loan waiver scheme has revealed that the failure of the previous government in United Andhra Pradesh has become a major hurdle for the new government in implementing its electoral promise.

According to sources, the bankers told Andhra Pradesh Chief Minister that the RBI had so far not agreed to re-scheduling of the loans as the previous government, which had declared that 113 mandals that were affected by drought and 462 mandals by cyclones and heavy rains during 2013, did not furnish a detailed report to the RBI.

As per norms, the state government should furnish details to the RBI before the financial year ends. This was the main reason why the RBI has been reluctant in accepting the proposal of the government of Andhra Pradesh.

However, the bankers are learnt to have told Chandrababu Naidu that they would also urge the Reserve Bank to issue guidelines on the issue of loan waiver.

Naidu told the bankers that the government would put on record what they had stated and would write a letter to the RBI to treat the issue as a special case as the state was in the process of being bifurcated at that point of time. He said he would once again take up the matter with Prime Minister Narendra Modi.

The government would be writing to the RBI in the next couple of days requesting it to allow the banks to reschedule the loans without putting any conditions on the repayment of loans taken by the farmers in the previous year, a top source told The Hans India.

The AP government would reiterate that the state was in a period of transition and was under the President's Rule and hence it could not adhere to the normal procedure.

Hence the RBI should view this as a special case and relax the norms immediately so that the farmers in the state who were under the threat of facing another drought could be helped immediately.

The officials said that Naidu was also pursuing the matter with the union Finance Ministry and was seeking exemption of the rules and regulations stipulated by the banks to release fresh loans in the drought and cyclone hit districts in Andhra Pradesh.

The government is worried over the likely political impact if it fails in persuading the RBI to issue guidelines in regard to loan waiver.