Telangana Dy CM asks banks to utilise funds released for crop loan waiver for the intended purpose

Telangana Crop Loan Waiver Scheme 2024: Deputy CM urges bankers to utilize funds for loan waiver purpose.

As the first phase of the prestigious Crop Loan Waiver Scheme 2024 for waiver of loans up to ₹1 lakh got underway in Telangana on Thursday, Deputy Chief Minister (Finance and Energy) Mallu Bhatti Vikramarka has exhorted bankers to utilise the funds released by the Government for the intended purpose.

He warned the bankers against diverting the amounts to other loans secured by farmers as this could put them to inconvenience. The Government is committed to implement its promise of crop loan waiver to the tune of ₹31,000 crore before August end and funds will be released accordingly, he said.

The Deputy Chief Minister addressed a meeting of the State Level Bankers Committee (SLBC) ahead of crediting the amounts into the crop loan accounts of farmers. In the first phase, the Government released ₹6,098 crore benefiting 11.5 lakh farmers. Nalgonda district received the highest loan waiver amount of ₹454.49 crore for 83,124 farmers while constituency wise, Andole was on the top with ₹107.83 crore released for 20,216 farmers.

He said the Government would release funds for implementation of second phase of the scheme waiving loans up to Rs. 1.5 lakh before this month end and the last phase of waiver up to Rs. 2 lakh would be implemented next month. Bankers were advised to hold meetings with farmers who took loans above ₹2 lakh for recovery of the balance amounts from them.

He described the crop loan waiver as historic and said no Government had implemented the scheme of this magnitude in the past. Chief Minister A. Revanth Reddy in his capacity as the Telangana Congress president assured loan waiver before elections and the Government was implementing the promise within months of coming to power crediting the loan waiver amount of ₹31,000 crore into over 40 lakh farmers accounts. “This is the biggest recovery in the country and even corporate banks did not achieve this distinction,” he said adding the Government’s decision should be seen as an encouragement to the banking sector.

He asked the bankers to credit the amounts released by the government into the loan accounts and take steps to ensure early release of loans to farmers in the coming days. “There should not be any negligence on the part of banks in issuing fresh loans. The lead bank should play the “big brother’s” role in this regard,” he said.