Karnataka becomes the fourth state to waive off farm loans. Waiver of loans disbursed by cooperatives to cost the state over Rs 8,000 crore. Karnataka Chief Minister (CM) urges the centre to forego loans by nationalised bank as well.
The present announcement is mainly for the farmers who have availed loans from the cooperative sector.
“As far as this is not going to affect the repayment culture, we are not that much concerned,” Mahabaleshwara MS, MD & CEO, Karnataka Bank told CNBC-TV18.
Having understood the ground level realities, concerned state governments are resorting for these kind of things. Some more governments are likely to follow this farm loan waiver theme, he said.
Mahabaleshwara also stated that though these type of loan waiver schemes provide short-term relief, major problems of farmers are not getting addressed.
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