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Relief related to agriculture loans should be targeted one: Shaktikanta Das
Feb-25-2020

The Reserve Bank of India (RBI) Governor Shaktikanta Das has said generalised loan waiver is credit negative which undermines the credit culture in the system. He asserted that the relief related to agriculture loans should be a targeted one.

He said such write-offs of loans affect the capability of farmers to access debt for the next season in time. He noted that any kind of relief to farmers because of natural calamities or due to other kinds of distress should always be targeted.

The governor said ‘What we stress with the state governments is that the waiver amount or the write-off amount should be released immediately to the banks because unless banks get the money, the capability of banks to provide loans to the next crop cycle will be affected.’ Besides, a few state governments have announced farm loan waivers in the recent past.

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