Karnataka govt orders commercial banks to release money for farm loan waivers in single instalment, not four

Bengaluru: The Karnataka government has ordered the release of money for farm loan waivers in commercial banks in one instalment as against four instalments announced in the budget in 2018. As per a government order dated 11 June, the money will be transferred to the accounts of the eligible farmers in one instalment.

The loan waiver comprises of restructured loans of Rs 2,812 crore, overdue loans of Rs 3,057 crore and incentive for regular loans of Rs 720 crore, which farmers had taken from the nationalised banks. However, the government has yet to take a call on the Non-Performing Asset (NPA) loans, which are eligible for a waiver. There are 1.08 lakh farmers having a loan of Rs 965 crore under the NPA loan category. [caption id=“attachment_6000951” align=“alignleft” width=“380”]  File image of Rahul Gandhi and HD Kumaraswamy. ANI[/caption]

The government has cleared the loans of 7.5 lakh farmers by paying Rs 3,930 crore to the commercial banks. It has paid Rs 4,830 crore to the cooperative banks benefiting 11.2 lakh farmers.

Chief Minister HD Kumaraswamy had in July 2018, approved farm loan waivers to the tune of Rs 46,000 crores that would benefit approximately 42 lakh farmers and would be executed in phases over a period of four years. This scheme was part of the JD(S) manifesto, which chief minister HD Kumaraswamy implemented after taking its ally Congress, in the government, on-board. On Wednesday, officials in the government said that the chief minister has convened a meeting with the state level bankers for 14 June regarding the crop loan waiver.